Multi-level Capital Market In The Gem Study

China's capital market has developed step by step along with the reforming process of the country's economic structure. We have all witnessed the achievements made in its rapid development in recent years. Due to the poor coordination in initial reforms and limitations in its system design, China's capital market still suffers from some serious defects in its system structure. It is that the unreasonable distribution and function orientation of the capital market, single-layered system and market structure with administration restriction, restricted the effective function of capital market. It is now an urgent task for China's capital market to foster a sophisticated market structure. In 2003, since some decisions of the Center of the People's Republic of China about consummation socialism market economic system proposed that our country wanted to establish the multi-level stock market system, it put this topic into a more important position.What our country must establish at present, is the multi-level capital market pattern which agrees with the capital market internationalization and which includes the multi-level trading market, many kinds of bargain ways and the diverse transaction varieties. In this pattern, the stock market is easier to become the multi-level market than others. Regarding our country multi-level Stock market's construction, the preliminary tentative plan is that our multi-level Stock market is made up of main board, second board which is the Growth Enterprise Market, and third board. The construction of the Growth Enterprise Board is the key link to set up the multi-level market in our country,but it is still a board in the design. The establishment of the Growth Enterprise Board will speed up our country's capital market multi-level advancements greatly, simultaneously brings a series of system innovation. This article researches the Growth Enterprise Board in the multi-level capital market.This article includes four parts: In the first chapter, I explain capital market's situation, make the connotation of the multi-level capital market system clear, and simultaneously discuss the system transformation in foundation of the establishment of our country multi-level capital market. Our capital market has been developing along with the development of the stock economy. In the passed several years, the capital market promoted the state-owned enterprise reform, also promoted the multiplication of throw the financing system's formation, expanded the national financial revenue channel, and raised the efficiency of our country's economy operating. However, our country's capital markets have the serious system flaw in many aspects such as on scale, function, structure, and rule. The establishment of the multi-level capital market is essential for the development of our country multi-level economy. Our country is a great nation with developing level. There are many big differences on regional economic levels. So establishment of the multi-level capital market system is the inevitable choice for our country. What our country must establish at present, is the multi-level capital market pattern which agrees with the capital market internationalization and which includes the multi-level trading market, many kinds of bargain ways and the diverse transaction varieties. The establishment of multi-level capital market'will bring a series of transformations, including the release from examination and approval system, the bargain system and the transaction varieties and so on.The second chapter concerns how to consummate the main board market. Although this article discusses the problem of the Growth Enterprise Market, however, because our country's Growth Enterprise Market is still an aboard in the design, at the present, the main board market is the only level in our stock market. The reformation of main board market linked the Growth Enterprise Board. It is that the un-proper distribution and function orientation of the capital market, single-layered system structure and market structure with administration restriction, restricted the effective function of capital market. In order to solve these problems, also in order to engage with the Growth Enterprise Board which will be promoted later, our country's main board market should transform the corresponding pattern and the system. According to author's plan, the stocks in Shenzhen main board may be shifted to Shanghai, thus the Shanghai stock exchange will be the only main board market, while Shenzhen stock exchange will build the Growth Enterprise Board. In the third chapter, I clear the basic concept, the function and the levels of the Growth Enterprise Board. The Growth Enterprise Board is the stock market which service minor enterprises and High-tech enterprises that in the newly established time but have good growth potential. The Growth Enterprise Board market's establishment will be the key link to consummate our country's stock market system. The Growth Enterprise Board market's establishment gives the minor enterprises new financing channel, and pushes forward the innovation of our country's stock market system. Our second board market must profit from the American NASDAQ's experience, use the independent market movement pattern, and simultaneously, should be divided into three levels, suiting the different enterprises'requests.In the fourth chapter, I design the system of The Growth Enterprise Board in the future. In listing requirement, although the present standard announced by the Securities Supervisory Association is lower than the main board market, it overemphasizes the profit target of the enterprise and neglects the growing potential of enterprises. The Growth Enterprise Board should reduce the standard of listing, at the same time, it should emphasize the growing potential of enterprises. Looking from the international experience and our country's reality, institutional investor is the main participant in the Growth Enterprise Board. In my opinion, our country's Growth Enterprise Board should establish the corresponding transaction system to encourage the institutional investor. The biggest impact the Growth Enterprise Board brings to our country's securities business is the import of the Market-maker. Comparing with The Price-contesting system, Market-maker system is more suitable to The Growth Enterprise Board. Multi-level capital market consummation also needs to establish a good linking-up system between the market interior levels and the boards. Moreover, the author believe that, establishment of the Growth Enterprise Board will bring a series of transformations including the examination and approval system, the release system and the release fixed price and so on. Our country's multi-level capital market is in its crucial time of constructing. So, it provides the Growth Enterprise Board the advantageous turning point. The Growth Enterprise Board will also greatly impel our country's multi-level capital market construction. The Growth Enterprise Board itself riches levels our capital market. In the future, the interior of our country's Growth Enterprise Board will also have rich levels, and simultaneously link up with the main board market and the third board market, and also impel the development of other levels in the securities business. The extrusion of the Growth Enterprise Board, not only provides a new investment outlet for the investors, but also is the key to the transformation of the capital market system of our country.