The IPO System Of Gem Should Be Improved From Three Aspects.

< p > in order to better support the development of innovative and growing small and medium-sized enterprises, China's < a href= "http://www.91se91.com" > SFC < /a > recently drew up the management method of IPO and listing on GEM.

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< p > compared with the existing IPO method, there are many highlights in the draft.

According to the tenth article of the first draft, it is the first time to emphasize the need to protect the legitimate rights and interests of small and medium-sized investors. The seventeenth requirement is to "effectively protect investors' rights in accordance with the law, such as the right to income, the right to know, the right to participate, the right to supervise, the right to make compensation" and so on.

The draft also relaxed the financial admittance index of the growth enterprise market, no longer required the net profit or operating income of the issuer to continue to grow, and also lowered the entry threshold for the industry, and was no longer confined to nine industries, such as new energy and new materials.

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< p > with such a great revision, if the new a href= "http://www.91se91.com/news/index_s.asp" > gem "/a" IPO method has been put into effect, "China's NASDAQ" market is expected to usher in a new round of development climax.

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< p > reviewing the actual situation of the Shanghai and Shenzhen GEM market in the past four years, there are many problems worth summarizing.

For example, due to the innovation of the head, high-tech and other halo, and because of its smaller plate, the gem shares generally appeared "three high" issue.

For example, the performance of GEM companies is becoming more and more serious. This shows that there is suspicion of packaging and whitewashing.

For example, when the gem has created more rich people, the cash flow of the size and the abnormal is fierce.

Moreover, because of the high threshold, many small and medium enterprises with promising but unstable performance are blocked outside the door of the gem.

This is also a major reason why many small and medium enterprises in China have no chance to go to NASDAQ after the launch of the gem.

Therefore, to further improve the IPO method of gem, we should be able to retain more quality companies such as Tencent and Sina in the domestic market. The significance behind this is self-evident.

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< p > overall, the IPO method of gem should be improved in three aspects.

First, financial access indicators should be further relaxed.

Initially, in order to ensure the smooth launch and smooth operation of the growth enterprise market, the performance of the issuer either requires its net profit to continue to grow, or require its operating income to continue to grow, and there are mandatory provisions for net profit indicators.

The draft has no mandatory provisions on the net profit of the issuer. As long as all other aspects are up to standard, the annual profit and operating income of not less than 50 million yuan can be landed on the gem, and the conditions are much more relaxed.

However, the draft will also shut out small and medium-sized start-ups who are unable to make profits but grow faster in business income, which is also a short board for the draft.

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Less than P, even a company losing money in successive years can also be listed in the Nasdaq market.

In April 2011, the century Internet Group successfully landed on the NASDAQ. The operating income of century Internet group increased by 30.2% in the same period last year, and increased by 67.5% in 2010, but it also suffered the embarrassment of three consecutive years of loss. However, the loss did not become an obstacle to its NASDAQ a href= "http:// www.91se91.com/news/index_cj.asp" > Listing < /a >.

Another concern is Amazon, which has been losing 8 consecutive years after its listing in the US, but has finally achieved a top notch company.

Similar examples are not uncommon in the Nasdaq market.

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< p > secondly, the size of the gem should be further extended.

The main purpose of gem listing is to finance. In order to become bigger and stronger, the size reduction should be followed. Otherwise, if listed for high priced cash, the listing will be meaningless.

And loosening financial standards, in fact, for more enterprises that did not conform to the GEM listed companies before, after the implementation of the registration system in the future, if the market is more for those who cash in cash, it is obviously unfair.

So, in the design of the system, we must try our best to prevent enterprises from going public in order to cash in.

At present, the listing of GEM companies is largely committed to three years of lock up.

The index of financial admittance has been greatly reduced, opening a door for GEM companies, and closing a window at the same time.

Therefore, it is suggested that the non locking period of gem should be extended for another year.

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< p > Third, greatly increase the cost of violating regulations.

China's a href= "http://www.91se91.com/news/index_cj.asp" > Securities < /a > the low violation cost of the market has been widely criticized. This draft has not fundamentally changed this drawback.

If the issuer's application documents contain false records, misleading statements or major omissions, or the issuer is not in conformity with the terms of the sale, fraudulent means shall be used to defraud the serious violations such as issuance and approval. The penalty is only thirty-six months' time.

If an enterprise wants to issue a listing, after years of careful preparation, there should be no "false record, misleading statement or major omission" phenomenon. If it exists, it is likely to be "deliberate" to deceive the issuing qualification. There is no essential difference between the violation of the plot and the fraudulent means of obtaining the approval of the issue. For such issuer, it should be swept away forever.

In addition, the penalties for the irregularities between sponsors and intermediaries are also slightly lighter in the draft.

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