High Price Earnings Ratio + Delisting &Nbsp; New Industries Are Vulnerable To Internal Injuries.

By the end of 2010, the GEM listed companies accounted for more than 40% of the seven strategic emerging industries.

The gem has not only allocated the needed funds for the development of these companies, but also made the emerging industries listed to be favored by PE.

However, the high issuance price, high price earnings ratio and the "three high" phenomenon of the gem have had a negative impact on the development of new industries.

If we do not improve relevant measures as soon as possible, it is likely to restrict the development of new industries.

According to the Listing Rules of the Shenzhen stock exchange gem, the gem has increased three delisting situations than the motherboard, that is, the listed companies' earnings are negated or unable to express their opinions.

In this way, the listing from GEM companies to delisting will take at least three accounting years, and the gem has been born for more than a year.

Large scale raised funds also significantly increased the operational risk of listed companies.

Many GEM companies invest less than 10 million yuan a year before listing. When they first launched, they raised hundreds of millions or even billions of dollars. The regulatory authorities set time limits on the use of raised funds, and listed companies had to establish new investment targets in a very short time. This undoubtedly increased investment risks.

Under the temptation of high price earnings ratio, the original entrepreneurial team of GEM companies has split up trend.

The price earnings ratio of hundreds of times means that the share price of the company now contains the profits of the company over the past hundred years. Under the temptation of such a super high price, "bag for safety" is the best choice for company executives.

In order to make the gem better serve the national emerging industries and promote the pformation and upgrading of the economic structure as soon as possible, we should further improve the supervision of the gem from the following aspects.

First of all, the direct delisting mechanism of gem should be implemented as soon as possible.

The high price earnings ratio of GEM stocks is largely due to the lack of institutional defects in the delisting mechanism, which makes investors lose the minimum sense of risk, thereby stimulating speculation and generating abnormal phenomena such as "three high".

Shang Fulin, chairman of the securities and Futures Commission, said recently that we should actively explore the delisting system of GEM companies and give full play to the survival of the fittest in the market.

Secondly, in order to avoid the abuse of over raised funds, we should set stricter standards for the use of over raised funds of GEM companies, and restrict the companies with large overfunds to refinance, so as to improve their refinancing conditions.

Finally, we should appropriately extend the lifting period of the original shareholders of the gem.

The securities regulatory authorities should clearly stipulate that the original shareholders of the growth enterprise market will suspend the circulation or limit the quantity of circulation before the market has started to straighten out and the market price system has been preliminarily straightened out.

The establishment of gem is a milestone in the development of China's securities market.