Gem Launched Did Not Divert The Main Board Funds

October 23, 2009, China

Gem is a hot spot in our capital market this year. The word "gem" has become the three word in this year.

That is to say, this year, the topic of gem in China's capital market is always uninterrupted.

And when the market has news about the growth enterprise market, the related stocks will catch the wind.

If the SFC accepts the news that 7 will be listed on the gem, the venture capital stock will show a collective frenzy on the day before.

In fact, on the first Friday before the news came out, venture capital stocks were excited by the news.

When the news was confirmed, natural venture stocks found a crazy reason.

On the eve of the opening of the gem, the stock index also experienced a downward trend.

However, as a positive attempt to improve the institutional construction of China's multi-level capital market, the launch of the gem will not only help broaden the financing difficulties of SMEs and entrepreneurial high-tech enterprises, but also help to expand new investment channels.

Facts have also proved that the introduction of gem trading at the same time, market funds continue to flow into the stock market.

Throughout the year, it should be said that 2009 is an extraordinary year for China's stock market. This year, the main index of China's stock market is far ahead of the world. The Shenzhen stock index [11699.83 0.30%] has achieved an annual increase of 111%, the fifth largest gain in history, and the three index of the world's total annual doubling.

The Shanghai composite index ranked 79.98% in 2009 as the seventh largest stock market in the world, the fifth largest annual gain in its 20 year history.

If we want to sum up the reason why the stock market has such a gratifying trend in 2009, the first thing we should think of is the 4 trillion economic stimulus plan, which has revitalized a number of industries, and has also promoted the development of other industries. "The stock market is a barometer of economic development". Under this policy, the stock market performs better naturally.

However, if we think that the launch of the growth enterprise market will affect the market trend, this is possible in the short term, but this may not be the case in the long run.

Because the scale of the GEM companies is generally small, the number of shares issued is mostly in the tens of millions of levels, and the financing amount of dozens of enterprises is just the same as that of a large blue chip stock in the main board market. Therefore, the impact of the gem on the market is more on the psychological side than on the capital side.

At the same time, from the A stock market trend before the launch of the gem, it can be seen that the market is still constrained by the macro economy and capital side. The news launched by the gem has not damaged the market environment, nor has caused too much impact on the capital market diversion. Instead, it has provided more hot opportunities for investors, such as venture capital stocks.