Gem Should Not Be Too Demanding.

The 5 years since the birth of the gem has been a relatively low period for the development of China's capital market.

Nevertheless, the growth enterprise market is still showing vigorous vitality.

Since the listing of 28 self surrender companies, the growth enterprise market has developed rapidly, and the number of new listed companies has increased year by year, and the market scale has steadily expanded.

As of August 31st this year, there were 387 listed companies on GEM, with a total share capital of 102 billion 538 million shares, 29.6 times that of 2009.

The total market value was 1 trillion and 958 billion 727 million yuan at the closing price of the day, 12.2 times that of 2009.

Today, the growth enterprise market has grown into a pivotal force in the multi-level capital market.

In the first few years, the index has fallen sharply due to the "three high" issues.

However, with the passage of time, the characteristics of the focus of its emerging growth enterprises are gradually being sought after by investors.

Especially in the past two years, the gem index has hit a new high and has become one of the hottest plates in the stock market.

At the same time, the gem has also benefited investors.

Statistics show that since the establishment of the gem index in June 1, 2010, to August 31st this year, the growth enterprise market index has experienced several ups and downs, but it has achieved 42.45% positive returns in the twists and turns, while the other main indexes of A share are negative returns in the same period.

At the same time, GEM companies insist on a higher cash dividend ratio.

In the 5 years from 2009 to 2013, the total share profit of GEM companies was 30 billion 630 million yuan, accounting for 35.1% of the total net profit realized, which was higher than that of the Shenzhen stock market.

Over the past 5 years, the gem has gathered 290 strategic emerging industries companies, covering a new generation of information technology, energy saving, environmental protection, high-end equipment manufacturing, new materials, new energy and biology and other fields, forming a distinct plate characteristics.

The distribution of emerging industries of gem is in line with the current situation of China's industrial upgrading, which fully reflects the direction of economic structural pformation at this stage and has become one of the driving forces to boost China's sustained economic development.

With the help of the capital market platform, the performance of the 290 strategic emerging industries listed before and after listing is commendable.

According to statistics, the composite growth rate of the strategic emerging industries listed companies reached 20.78% before 2013, reflecting a good growth.

Today, the growth enterprise market has become an important platform for supporting independent innovation enterprises.

Of the 387 GEM companies, 363 have high and new technology enterprises, 329 have core patent technology, 152 have national Torch Plan projects, 47 have 863 national plan projects, and 36 are national innovation pilot enterprises.

Besides,

It has also become an important platform for mergers and acquisitions of many emerging industries.

As of August 31st this year, the gem has announced a total of 118 major asset restructuring programmes, of which 82 are single strategic emerging industries, with a total amount of 50 billion 148 million yuan, covering strategic emerging industries such as information technology and communications, cultural media, energy conservation and environmental protection, which has promoted China's economic restructuring and accelerated the process of industrial upgrading and pformation.

Opening the trend chart of gem can strongly feel the "bull" of the two years.

Starting from 585 at the end of 2012, the gem index is on the way up, with the highest 1571 this year.

With the rise of index, the price earnings ratio of GEM has continued to rise.

According to the data of Shenzhen Stock Exchange, by the end of August this year, the average price earnings ratio of listed companies on GEM has reached 61.54 times.

The reason for such a high price earnings ratio?

In terms of performance, the growth rate of growth rate of GEM companies has been growing steadily for 5 years, and the average income scale has increased from 305 million yuan in 2009 to 657 million yuan in 2013, an increase of 115.5%.

Although net profit experienced a slight decline in 2012, it rebounded rapidly in 2013, with an average net profit of 78 million 250 thousand yuan.

While the overall performance of the plate has been improving, some excellent companies have come to the fore.

Of the 355 companies listed before 2013, 13 companies had a net profit compound growth rate of over 50% after listing, and 20 companies had a net profit increase of over 300%.

From this, we can see that the growth of the gem has its reasonable support: first, the emerging industries and high-tech industries represented by the gem are in line with the general direction of China's economic pformation and upgrading, and have gained a higher degree of recognition; two, the performance of GEM companies is growing rapidly, and the heavyweights have maintained a relatively high growth rate, which has strongly supported the rise in share prices.

Most of the top 20 companies in the gem share price increase are matched by share price gains.

Among them, 9 companies net profit compound growth rate ranked 20,17 before the top 50.

"Bull stock performance" embodies the function of gem to allocate resources rationally and market value to discover.

Of course, from the recent situation, the share price of some performance poor GEM companies has also risen sharply, and its motive force mainly comes from the short-term speculation in the market, which will inevitably bring about a share price bubble.

The growth enterprise market was initially set up in service innovation and growth enterprises, and the market had high expectations for its growth. However, in recent years, the performance of GEM companies has fluctuated significantly.

According to statistics, in the past 5 years since the establishment of the gem, the overall net profit growth rate in each year has been 43.5%, 31.2%, 19.94%, -6.87% and 10.94% respectively, and the number of performance decline and loss companies is increasing year by year.

The instability of performance is related to the development characteristics of GEM companies.

By the end of 2013, the average operating income of GEM companies was 657 million yuan, with only 5 companies earning more than 3 billion yuan. The highest income Jifeng agricultural machinery was less than 6 billion yuan, and the scale of the company was generally small.

Innovative enterprises have the characteristics of small business scale, weak ability to resist risks and large fluctuations in performance. In recent years, the severe external economic environment has exacerbated the volatility of their performance.

The big fluctuation of growth rate of gem's net profit reflects this point.

Looking at the growth of enterprises requires a long-term perspective.

From small to large and weak to strong, enterprises must undergo a fluctuating process. Performance fluctuations in the short run are reasonable phenomena. With the rise of new industries, the growth of enterprises is reflected in many dimensions, such as market share, customer stickiness, brand value and so on. The short term decline of performance can not represent the loss of growth.

From the perspective of innovation ability and economic vitality, gem has many outstanding enterprises in the field of subdivision, such as LETV, blue cursor and other companies, expanding the market and undertaking industrial mergers and acquisitions with capital market advantages, rapidly expanding the asset scale and operating income, improving the location and market competitiveness of the industry, and is expected to become a leading industry in the future.

Therefore, some market participants believe that the performance volatility of GEM companies needs to be more inclusive, forming reasonable expectations, and not focusing on sustained growth of performance.