Analysis Of The Three High Phenomenon Of The Growth Enterprise Market Of China Based On Participants’ Behaviors

Since the establishment of China gem in Shenzhen Stock Exchange, the gem provides a new source of financing for high growth enterprises in the future development, adding vitality to the development of small and medium-sized enterprises, and has far-reaching significance for further healthy development of the capital market. But the problems of the gem were also astonishing. High price of issuance, high P/E ratio, high fund-raising, all these are in an endless stream, resulted in the abnormal richness in serious condition, inefficiency use of a huge amount of money raised, and the decline of performance of the listing coiporation in future.In order to listing, the listing corporations even conduct fraud to improve its performance before listing, the sponsors provide makeup assistance to the listing corporations for the high underwriting fee income and even participate in, guide the listing corporation to make the fraud. The inquiry institutions completely lost of independence, and offer the high price in accordance with the desire of listing corporation and the sponsors because they didn’t take responsibility for their pricing. After the listing, the listing corporations obtained millions or even billions of cash, the brokers gained million or even several hundred millions of the commission fee, the institutional investors, particularly PE quickly evacuated with more than ten times or even dozens of times, hundreds of times return on investment, and the stock market value of the original holders were the sum of the company’s future decades of income, which caused the original investors no longer focused on the original business and eager to realize the stock in the market. After the related parties evacuated, the problems of gem left will be borne by innocent individual investors, caused bad social influence. The gem has been lost,and these are serious obstacles to the future development of the market.This paper will attempt to study roots of the three high phenomenon as a starting point from the behavior of the market participants’ motivation, to provide ideas for reform of the market. The viewpoint of this paper contributes to the supervision departments to open thinking, more conducive to the maintenance of the majority of the gem investor’s vital interest, with wide and deep social significance. The goal of this paper is to reform the Chinese gem market, in order to achieve the purpose of the design, providing funds to high growth and innovative enterprises in particular, and giving investors a suitable investment channels.