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Guidelines for China's GEM Emphasized
China's Growth Enterprise Market (GEM) should be designed under the guidelines of conformity with international practices, market-oriented operation and stringent regulations, said a source with China Securities Regulatory Commission (CSRC) at a symposium on GEM listing held Sunday in Hangzhou, capital city of Zhejiang province.
China should draw on the successful experiences and practices from overseas second boards like Hong Kong GEM and American Nasdaq Stock Market, such as independent shareholders, full negotiability and the sponsor system. Actually, China has made breakthroughs in this respect, the source said.
Meanwhile, market-oriented operation should be guaranteed. Reins should be given to the market as possible as it could be. In addition, an issue examination committee made up of market sources should be set up and a sponsor system be founded. Efforts should also be made to step up information disclosure, increase information transparency and strengthen legal education and risk education, said the source.
As the requirements for the GEM are lower and regulation is tougher, listing wannabes should speed up restructuring of their companies to attain standardized operation. The exit mechanism and the principle of survival of the fittest make it more necessary for them to be strict with capital application and management. It is learnt among the 5000 companies listed on the Nasdaq, 1500 have been delisted. (Panorama)
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