The Financial Media To Promote The Gem Issue System Reform Research

As an important part of china’s multi-level capital market, since its inception in October2009, Growth Enterprise Market (gem) has exposed the deep level defect in the issue system. This series of defects reflected in the market lead to high issuing p/e ratio of listed companies, raised funds far more than the actual demand, and serious company distortion caused by investors bedding bag for long-term, which namely known as the "three highs issue" in the industry commonly. To the contrast, a high p/e attract many enterprise to malicious false to seek big financing in the gem by get listing, as a result, high amount super funds cause "reverse incentive" of the listed company, and high price makes the company executives or shareholders sell the holdings crazily, which formed the situation of average investors looted, and at the same time the company shareholders’corruption effect inspired resentment of ordinary investors or general public. The most important things concerned, are the differences between China’s audit system with administrative examination as the core and western countries’registration system due to its mature market to adequately disclose information.This paper focus on the supervision motivation, supervision process, supervision ways, supervision effect, and the future development trend of the financial media especially new financial media in a series of public opinion supervision process under background mentioned above. And what’s core is the direct role of the financial media in the reconstruction process of new stock issuing rule with facts.The process is on at the steps mention above. this paper first focus on the motivation of financial media’attention about the gem issuing system, followed by the introduction of gem and china’s financial media development situation, to confirm the motivation mainly comes from attracting audience’ attention and implementing the commercial appeal, and with data to prove the highly coincidence existing between audience basis and commercial appeal in the financial media operation.Second, the paper is to study how the supervision process lead to final public opinion, and puts forward the conclusion, which is different information flow process exist among different investors and people, especially in the face of ordinary investor more than70million people. Financial media through the existence of opinion leaders have a forceful effect on investment decision and investment psychological of ordinary investors, and its core is the correlation and proximity in the gem and audience interests, to realize the unity between media agenda and the public agenda.Third, about the part of supervision effect study, the paper through case proved that the media supervision not only pure the market in individual events to protect the rights of investors, but also deeply affect the system for issuing even system of new shares in whole gem capital market (including motherboard, small and medium plate). This promotion got clear position of the top government and specific administrative supervision department in2012.According to reform signal released by the official, it’s directly proved that strong effects and special value made by financial media’s the supervision of public opinion.Fourth, as a symbolic example, this paper discusses the convergence between our financial media and western advanced financial in reporting manners in the process which financial media show attention about gem. And the report start to more use the Internet to deepen and interactive features, which foreshadow the financial media and the general public reading threshold, is lowering, to lay the foundation for the next step of the broader spread of financial topic.At last, the paper is to proceed expectation of the future trend, which is the transformation from "audit system" to "registration system" model of new stock issuing system in China, and it’s supervision about the gem system by the financial media can be obviously divided into three stages. As a supplement, this paper also studies the certain problem in the process which financial media supervise the system for the rule of gem issuing.