China's Gem Market And Its Problems

This paper aims to discuss the development foundation of Growth Enterprise Market in China and its problem. Investigating China Growth Enterprise Market’s overview, background, operation and development foundation, we reach the conclusion that it has the condition for successful development. The main problem in current period is IPO pricing, attributing to the immobilization of state-owned shares and corporate shares, inconvertibility of RMB capital account and ineffectiveness of short position mechanism. Besides these, there are other problems in the fields such as corporate governance, funding money usage, system building, and regulation control. Improvements methods should be carried out as soon as possible.