China'S Gem Can Not Take The Road Of "Big In And Out"

The 2010 annual report and the 2011 quarterly report were recently disclosed.

In Europe and the United States, "big gains and big gains" seem to be the basic attributes of gem and the way to go.

They hope that the listing threshold of gem will be lower and lower until there is no threshold.

One statistic made a strong footnote to this view: according to the data released by the NASDAQ and the world exchange Federation, a total of 12965 companies in the US NASDAQ were delisted from 1985 to 2008 (the author notes: 23 years).

If China's growth enterprise market is going this way, what will it be?

As of May 3rd, there were 216 listed companies in China's gem. According to reports, the gem will be listed at the rate of 200 per year in 12th Five-Year.

According to the operation rules of the US gem, the listed company of China's growth enterprise market will be less than 216 by May 2016, and 1000 companies will be listed on the market.

If pushed back for 23 years, the market will still be listed by 200 annually. By May 2034, China's GEM companies will still be less than 216, with 4600 companies listed on the market.

Who will benefit from "going forward"?

It is good for venture capital.

Venture capital is designed to find a bud that might be listed.

When the company is listed, it will win tens of times in only three or five years, and 10 of them will benefit a lot.

The more listed companies on GEM, the greater their chances of making profits.

One of the effectiveness of the gem is to provide exit channels for venture capital. Once the exit conditions are met, venture capital will quickly gain profits and the company will withdraw from the market.

It also has little impact on venture capital.

Because the listed companies of gem do not need much money in the start-up stage. Once they are listed, these entrepreneurs will immediately increase their value and go straight to the billion class.

After the lifting of the ban, they can recoup their original cost by simply reducing their chips.

For intermediaries, such as sponsorship, appraisal, law, accounting and so on, because their intermediary companies are listed, they can bring their deserved income into the bag, and the delisting is harmless to them. The more listed companies are, the more profits they will have.

As a result of "big in and out", it is very likely that investors in the two tier market will lose their money, and the more companies that are delisting, the more investors will lose their blood.

Therefore, I believe that China's growth enterprise market should not take the road of "big move forward and big come out", but should take the road of "strict entry and less output".

The positioning of China's growth enterprise market is to promote the development of independent innovation enterprises and other growth oriented entrepreneurial enterprises, and is an important platform for implementing the national strategy of independent innovation and supporting entrepreneurial enterprises in a growing period.

The purpose of establishing gem in China is to get rid of a number of world-class firms like Microsoft in the listed companies of gem, and the failure to produce a number of influential companies in the world is the failure of the gem.

Can this reduce the threshold?

The capital market's eye for capital is not so much. We must choose the most promising companies from the time of listing.

GEM listed companies now have two sets of standards.

One set is a continuous profit in the past two years, with a net profit of not less than ten million yuan; the other one is the latest year's profit, and the net profit is not less than five million yuan. The operating income of the latest year is not less than fifty million yuan. The growth rate of operating income in recent two years is no less than thirty percent.

For these two sets of standards to be strictly observed, the direction of their development should not be lower and lower, more and more loose until there is no threshold, but should be enriched, perfected and improved on the basis of practice.

We must strictly guard against the occurrence of packaging listing, counterfeiting listing and fraud listing, and severely punish the sponsors and other departments for slackening their standards and intending to recommend listed companies with unqualified companies.

There are hundreds of thousands of small and medium-sized enterprises in China. There is no need to worry about the strictness of standards, and we can not pick up more than two hundred companies with independent innovation and growth every year.