Lead The Growth Enterprise Market To Maturity By Regulatory Innovation

background

The China Securities Regulatory Commission and the Shenzhen stock exchange have held third training sessions on GEM companies in Beijing recently.

In China, the gem is responsible for promoting the pformation of economic structure.

Coping with the international financial crisis

Since its launch in October 2009, China's growth enterprise market has been running smoothly, and its functions in encouraging and guiding social investment, supporting the development of innovative enterprises, and promoting the integration of industry and finance are emerging.

However, there are still some problems in the growing gem, such as the matching problem between the high valuation level and the high growth rate in the growth enterprise market, as well as the contradiction between the serious lack of funds in the unlisted SMEs and the serious overdraft of the listed companies.

Specifically, there are still several aspects to be perfected in the Growth Enterprise Market: first, we must improve the core functions of investment banks.

Two, investors' judicial relief system should be launched as soon as possible.

Three, we should deepen the system of investors' appropriateness management.

Four, we should explore and study the market hedging tools and establish the internal stability mechanism of the market.

We should timely study and demonstrate the index futures and options of small and medium-sized stocks.

Five, it is necessary to provide institutional arrangements for the performance differentiation of listed companies. The market has increasingly urgent requirements for the implementation of the delisting methods that meet the characteristics of the gem.

In addition, we need to provide better platform and system for the development of gem, and we need to strengthen innovation in supervision, fully understanding and respecting.

In terms of market division of labor, a risk and responsibility sharing mechanism between regulatory authorities and all parties concerned should be established.

It is necessary to establish a risk and responsibility sharing mechanism among regulatory agencies, sponsor agencies and other intermediaries, listed companies and investors.

Efforts should be made to improve the construction of civil litigation system for small and medium investors, and further facilitate investors to safeguard their legitimate rights and interests.

The main body of the market is to enhance self-discipline and to establish a market restraint mechanism that emphasizes self-discipline and regulatory harmony.

For the internal management of the GEM listed companies, we should constantly improve the endogenous mechanism of the company's standardized operation.

The understanding foundation of GEM companies on corporate governance and normative operation is relatively weak.

Therefore, we should ask GEM companies to continuously establish and improve the corporate governance structure, strictly enforce the internal control system and so on. It is very necessary to focus on the norms of controlling shareholders.

At the same time, we should explore the endogenous mechanism to promote the standardized operation of GEM companies.

Intermediaries should be allowed to maximize their functions and build up a professional restraint mechanism for intermediaries.

We should fully mobilize the strength of intermediary organizations such as sponsoring agencies, financial advisory bodies, auditing institutions, and evaluation institutions, and play their professional and conscientious role in building a professional restraint mechanism to make it a powerful complement to the regulatory system.

The external market restraint mechanism should also be promoted. The external restraint mechanism of the market and public opinion plays an important role in regulating the development of listed companies and protecting the legitimate rights and interests of investors.

It is gratifying to note that, in view of the characteristics of the gem, regulators are actively promoting the information disclosure system innovation, corporate governance system innovation, equity incentive system innovation, merger and reorganization system innovation of the listed companies on GEM, and promptly study and perfect the delisting system of GEM companies.