Research On Supervision System Of Growth Enterprise Market In China

It was warmly welcomed and fully discussed when the Growth Enterprise Market was born on the last day of October 2009. Overall, the GEM running is steady, with its higher fluctuation than that in main board and highly price/earning ratio which makes GEM an expert in financing and a fertile field to be for Hot Money, but another name "fortune-making board" reflects the affirmation to its financing and suspect to its fairness. Small problems don't mean the systematic flaws in GEM and the severe contradictions and fatal matters are still invisible. For further challenges, the supervision on GEM should work as a bodyguard to protect GEM. On one hand, the supervision should improve the development of middle and small sized enterprises. On the other hand, the supervision should guarantee the market steady and ordered and protect the legal interests of investors, who are weak in information, position and power.GEM shares the same transaction and operating system with the main board. Nevertheless, a distinctive supervision is required by GEM for its particularity in construction, location, function and variability in transaction rules and special risks. This supervision system has similar characters with that on the main board in its essence, value and target, but owns a different feature in principle and coverage. For all the above, it is clarified that the particularity and necessity of supervision on GEM come from GEM's special features. On a specified legal basis, the discussion can be launched in a relative extent. Under this circumstance, securities markets of this kind in USA, UK, HONGKONG are selected to be researched as references. This paper mainly studies their legal system, power/responsibility of authorities, supervision on transaction, information disclosure system. A systematic decision would be made after these comparisons. This article discusses three supervision modes and two issuing modes. A detailing is inspected then. It starts from the current supervision system and remarks in some aspects as power of authority, transaction in market, participants in GEM and so on, looking for an better way to perfect this system.