Study On The Success And Failure Of International GEM And Its Implication On China

The Growth Enterprise Market (GEM)of China has been established after ten years'well preparation. However,looking back the development of the globle GEM, we find that most of them bears the traces of system imitation. They have similar listing standards , supervision system and so on, but their final outcome are of great difference. They show out a clear pattern of mass distribution and polarization. Therefore, the deep research on the success of international GEM will better provide an effective and smooth experience reference for the well development of China's Growth Enterprise Market. Then , the GEM could fully play its function and promote the development of SEMs in China.Based on the above considerations, this paper makes good use of a large number of factual material and statistical data. First of all, it summarizes the generanl development and operation characteristics of international GEMs which are divided into the success,the failure and unidentified three types, according to their operating conditions, running time and extent of the roll played. Second, from the view of the empirical analysis, we emphasize on the three mechanisms of the success, namely the continuing scale-expanding , innovative liquidity-maintaining and rigorous mechanism of survival of the fittest. Meanwhile, the social foundations, on which the three mechanisms rely,are also completely discussed. Then, the paper deeply analyzed the reasons of the failure from a reverse view. Finally, several implications and policy suggestions for China's already opening GEM, are put forward , expecting that it play its role to promote the growth of SMEs in China.