Legal System In China GEM Delisting

Chinese growth enterprise market (GEM) was established in the end of the October2009after more than ten years of the plan and prepare. The establishment of GEM enlarges Chinese financial market. It is a pivotal step to build the multi-level capital market and gives tremendous help to encourage and guide the social investment and support the development of the innovative enterprises. However, it has brought many problems which cant be ignored. The delisting provision is one central issue among the problems.On April20,2012Shenzhen stock exchange release Shenzhen stock exchange GEM delisting rules be taken effect on May1,2012. It means that Chinese GEM delisting rules was established officially. Regretfully there was no one enterprise be delisted up to November16,2012, when the market capitalization of355companies listing in Shenzhen stock exchange was up to eight hundred billion Yuan. Meanwhile, many problems have not been resolved in GEM such as the low efficiency and difficulty of delisting. Now the delisting rules of GEM make more progress about the delisting standards and delisting procedures than the main-board market. But there are still many issues need be improved. The delisting criteria about continuous loss could be avoided easily; the definition of the key concepts are not clear; the GEM delisting rules lack effective relief approach and enough protection of the shareholders rights.Facing these issues, it is necessary to build a well-organized delisting channel in order to enhance the operability of the delisting rules and quality of listing companies. This is also an effective way to protect shareholders rights. Currently much more studies about GEM are focused on the supervisory system and market-maker system than the delisting rules of the GEM. In addition, most studies about the delisting rules are from the economics but legal institution which is result of having no systematic theoretical basis.Above all, this thesis try to use the advanced experiences of the abroad GEM for reference and combine Chinese situation to discuss and study the Chinese GEM delisting rules systematically by using the theories of economics and sociology and nomology. This thesis will offer effective advice to make more contributions for Chinese GEM delisting rules.This thesis is divided five parts. In the first part, it makes an introduction about the background and significance of the topic, abroad scholars research achievements, textual structure and research methods. The second part is the overview of the GEM delisting rules. It defines the concept and function of the GEM and explain the legal connotation and the theoretical basis of the GEM delisting rules, the necessary of building the GEM delisting rules as well. In the third part, it makes an analysis of the abroad GEM delisting system about the delisting subjects and standards and procedures, rehabilitative measures as well. In the fourth part, basing on the GEM listing rules of Shenzhen stock exchange and the current situation of the Chinese GEM delisting system, the thesis makes a distinction between GEM and the main-board market, abroad GEM delisting rules and Chinese GEM delisting rules as well, in order to find the key issues. In the last part, the thesis makes a conclusion and offers effective advice for our GEM delisting rules basing on the aboard advanced experiences and the current issues of the Chinese GEM delisting rules.