Research On Financial Due Diligence Of Pre-listed Company Of Chinese GEM:Illustartion Of The Company G In City X

Chinese capital market experienced more than 20 years of rapid development has gotten maturing.GEM,which committed to serve entrepreneurial enterprises and small enterprises,is attracting a large number of companies eager to be listed.However,in recent years,regulators of the IPO review trend strictly.Due diligence,a highly professional and practical activity,has to be conducted on the way to IPO.It is always difficult to understand,analyze and guide the due diligence in theory.At present,there are few studies on due diligence in China,and they are mainly focused on due diligence research on M&A and in,vestment perspective.Therefore,this paper attempts to analyze the financial due diligence by the securities companies IBD of the pre-listed companies of GEM,and proposes the framework and key points.This paper focuses on financial due diligence and proposes the idea and key points of the due diligence of the pre-listed companies of GEM through the comparison from the theoretical to the practical aspects of the audit,that is,the analysis and verification of authenticity of the financial data of the issuer and of continuous profitability.Based on the work practice,this paper divides the due diligence of the pre-listed companies of GEM.into three stages:thorough due diligence,comprehensive due diligence and supplementary verification,and summarizes the main contents and methods of the three stages of financial due diligence.In our country,the information the financial due diligence of the pre-listed companies,especially supplementary verification of feedback reply is a trade secret.There are not many people know how to implement it.In this case,the author analyzes the whole process of due diligence,and summarizes the above theoretical research from the point of view of practical research and internal work.This paper also makes recommendations for the agencies about due diligence.