70% of Firms Show Interest in China's GEM

Recently, Social Survey Institute of China (SSIC) conducted a telephone interview on the attitude of small and medium-sized enterprises towards the pending China's Growth Enterprise Market (GEM) among both the traditional businesses and hi-tech ones (each accounting for 50 percent) in China's developed municipalities and provinces.

The investigation shows that 85.8 percent of the surveyed know that China will launch a second board for small and medium-sized enterprises. Among those that have no idea of China's GEM, 7.6 percent are hi-tech firms and traditional firms make up 20.8 percent.

31.5 percent of the enterprises interviewed showed great interest in the GEM (with hi-tech businesses and traditional ones accounting for 41.5 percent and 21.5 percent respectively.) 37.3 percent are fairly interested in the market (48.7 percent for hi-tech and 25.9 percent for traditional). 12.3 percent expressed they are interested in it but it is not very important (5.2 percent for hi-tech and 19.4 percent for traditional). The remaining 18.9 percent showed no interest (44.8 percent for hi-tech and 33.2 percent for traditional).

Will they regard the GEM as the main channel for financing? 36.1 percent of the respondents said they surely will if a GEM listing is possible for them (42.7 percent for hi-tech and 29.5 percent for traditional). 33.8 percent said they will probably count it as the main funding channel (35.9 percent for hi-tech and 31.7 percent for traditional). 30.1 percent said no (21.4 percent for hi-tech and 38.8 percent for traditional).

With regard to the qualification for GEM listing, 37.8 percent of the interviewees said GEM listed company should be hi-tech firms. 35.4 percent believed GEM listed companies should be hi-tech and high-growth enterprises authenticated by the related government department. 26.8 percent held an enterprise can get listed on the GEM if it has marketable products, better economic results and high growth potential.

As to their view on the GEM, 82.6 percent of the surveyed said the main significance of launching a second board in China does not lie in adding a business for investment banks and brokerage houses, but in making China's capital market more perfect. 86.9 percent believed the GEM is the main channel for small and medium-sized enterprises and high risk enterprises to raise funds.

36.5 percent saw the GEM as a place for fostering risk funds and a true funding channel for small and medium-sized businesses. 16.4 percent viewed GEM as a good place in which to snatch money. (Panorama)

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