How to improve

In my view, looking ahead, many important factors that will affect the growth enterprise market will undergo major changes: first, the current overvalued value is not sustainable.

Two, the contradiction between supply and demand is tentatively resolved.

Three, the high risk characteristics of venture enterprises are gradually showing.

Therefore, five problems need to be solved pertinent.

One is for different purposes.

China's GEM has made a higher demand for business life, profitability, scale and industry selection, and has guaranteed the smooth operation of the market in a certain extent.

However, the characteristics of start-up enterprises are significantly different from those of the main board, such as core assets are mainly talents and intellectual property rights, nonlinear high growth mode, light assets and low debt ratio. This determines that the qualification of listed companies should be flexible and targeted.

We should learn from the practices of different markets in different markets, such as the TSX-V and other markets, and formulate differentiated listing standards and regulatory requirements according to the characteristics of different industries.

Two, we need to increase the policy support for overseas listed technology companies.

The successful listing of Qihoo 360 in the NYSE has aroused widespread debate in China.

Well, the loss of listed resources also has a negative impact on China's economic development and gem construction.

China's GEM market should be specifically targeted at the special requirements of these overseas listed high-tech companies to attract them to return to China as early as possible.

For example, there will be some policy space in terms of redistribution and convenience in refinancing.

The financing scale of high-tech companies is often not large, but it requires higher efficiency and continuity. Sometimes efficiency is more important than financing cost.

According to the approval process of the main board, the application of refinancing of high-tech companies can not meet their needs.

The three is to build a multi-level capital market requirements, rationalize the delisting and pfer mechanism.

Since the gem has to encourage innovation, it must allow failure. Only by establishing a virtuous cycle of "getting in and coming out" can we keep the growth enterprise board "water is not rotten and the door hinge is not worm eaten".

Otherwise, in a few years, a lot of listed company will die, and the gem will become "junk boards".

It is necessary to reclaim the shell resources, which will encourage speculation and increase the cost of listing new companies.

The gem should carry out a strict delisting system, without ST, and direct delisting.

At this stage, we should increase the risk disclosure to investors, and mitigate the impact of the real delisting of the company in the future.

Combined with the construction of multi-level capital market, we have selectively opened up the two-way pfer mechanism of the gem and OTC market.

OTC listed company has undergone a similar pre-school operation period after its restructuring. The overall quality has been improved. It should simplify audit procedures and establish a fast access for them to enter the gem.

The gem delisting companies can re apply to the OTC market after meeting certain conditions, so as to solve the demand for individual investors' equity pfer.

Four, we should aim at the structure of investors based on individual investors and enrich the means of liquidity support.

Worldwide, it is not entirely a market maker that can solve the problem of liquidity.

"In a well known market, there are 11, 16 and 4 gem market in mixed market, directive driven trading system and market maker system". The performance is uneven, and the problem of insufficient liquidity still exists in varying degrees.

We must not be a market maker, but we must absorb the advantages of the market maker system.

We should attach importance to guiding the enthusiasm of institutional investors and serve the listed companies and guide investors through innovative market operation mechanism.

Five, it is aimed at the irreplaceable role of small and medium sized brokerages, and regulate excessive competition of commission.

In the stock underwriting and brokerage business, the launch of the gem has opened up a new world for small and medium-sized brokerages, and is conducive to differentiated operation and competition.

Compared with the traditional listed companies, the geographical distribution and industrial distribution of entrepreneurial enterprises are more dispersed. Small and medium-sized brokerages can establish relative professional competitive advantages through intensive cultivation.

The underwriting of the first 28 listed companies on GEM is undertaken by 23 brokerages respectively.

At present, we should attach great importance to the development trend of low level price competition relying solely on the reduction of trade commissions, and actively play the role of self-discipline and guidance of trade associations to curb some of the securities companies' suicidal behavior similar to "kamikaze".

Low paction cost does not mean the efficient operation of the market. The low commission fee standard will lead to a substantial decline in the quality of service and service content. Therefore, small investors can not get the necessary support, which will make the liquidity of the gem gradually depleted.