The biggest impact in June this year should be that the CSRC released on June 20 publicly solicited opinions on amending the Measures for the Administration of Major Asset Restructuring of Listed Companies. The most important of these is Article 3: Promote the continuous transformation and upgrading of GEM companies, and intend to support the reorganization and listing of assets related to high-tech industries and strategic emerging industries in line with the national strategy. Then, let's specifically analyze what it means to restructure and loosen the GEM.

The Significance of Reorganizing and Loosening Growth Enterprise Market;

1 It is proposed to cancel the net profit index in the reorganization listing standards and support listed companies to realize resource integration and industrial upgrading through mergers and acquisitions.

It is proposed to further shorten the calculation period of the cumulative first-time principle to 36 months, guide the acquirer and its related parties to control the company and accelerate the injection of high-quality assets.

3. Promote the continuous transformation and upgrading of GEM companies, and intend to support the reorganization and listing of assets related to high-tech industries and strategic emerging industries in line with national strategies. Fourth, it is planned to resume the matching financing of reorganization and listing, support listed companies to put assets into multiple channels to improve cash flow, play a synergistic effect, and guide social funds to gather in high-tech enterprises with independent innovation capabilities.

To put it bluntly, GEM stocks can also be listed through backdoor restructuring. If the GEM stocks fail to operate, other companies can be listed through asset restructuring. This rule can be said to be the influence of nuclear bomb level, especially for companies with poor growth enterprise market performance and struggling profit margins.