GEM Listing Threshold Is No Longer Required For Profit Indicators

< p > last Friday, the SFC issued the initial public offering and the < < a href= > http://www.91se91.com/news/index_c.asp > > < < /a > > listing management measures > (short term "first round method") and "Interim Measures for the management of securities issuance of GEM listed companies" (referred to as the "refinancing method"). The two methods are implemented from the date of promulgation. The revised gem start method relaxed the financial admittance index, abolished the requirement of continuous growth, and simplified the conditions of issuance. The refinancing approach will strengthen the constraint mechanism for refinancing and introduce the "small quick" private placement mechanism. < /p >
< p > < strong > no longer requires profit growth < /strong > /p >
< p > according to the past regulations, the gem a href= "http://www.91se91.com/news/index_c.asp" > Listing < /a > must satisfy one of the following two conditions: that is, the applicant has continued to make profits in the past two years, the accumulated profit of two years is not less than RMB 10 million yuan, and keeps increasing continuously; or the applicant has made a profit in the recent year, the profit is not less than RMB 5 million yuan, the operating income is not less than RMB 50 million yuan, and the operating income growth rate in recent two years is not less than 30%. < /p >
< p > the updated first round method abolished the requirement of continuous profit growth in the first condition. The second conditions were revised to be no less than 50 million yuan in the latest year. The net assets at the end of the latest period were not less than 20 million yuan, and the profit was not less than 5 million yuan. < /p >
< p > some analysts believe that the purpose of the gem is to finance technology companies and growth enterprises. The threshold of gem's listing has been reduced, and the coverage has been greatly increased, which means that management has the intention to readjust the industrial structure and place the hope of a new round of economic growth on innovative technology companies and emerging strategic industries. Gem is likely to expand rapidly in the near future. < /p >
< p > < strong > < a href= > http://www.91se91.com/news/index_c.asp > financing > /a > official gate opening < /strong > /p >
< p > before the announcement of the refinancing method, the SFC did not make relevant provisions on refinancing of gem. The above documents indicate that the amount of financing of the GEM listed companies applying for non-public offering shares is not more than fifty million yuan, and does not exceed ten percent of the net assets at the end of the latest year. The SFC applies the summary procedure: it will decide whether to approve or disapprove within fifteen working days from the date of acceptance. If a non-public offering is in a specific situation, it can be sold by the listed company on its own. That is to say, "no recommendation is not underwritten". < /p >
< p > < strong > negative gem stock > /strong > /p >
< p > many coupons believe that the above documents are bad for the current growth enterprise stock market. The CITIC Securities strategy group said that the release of the gem initial public offering (IPO) stock and refinancing management means that the equity financing of the gem will accelerate in the future, which means that IPO will soon open the gate, which is not conducive to the existing stock market in the short run. Li Daxiao, director of the British Securities Institute, also believes that the introduction of gem refinancing measures has a relatively small impact on blue chips, but the value of medium and small board and GEM stocks with high valuation is irreversible. < /p >