gem (growth enterprises market) board is a second-board securities market, which is second only to the main board market. It is represented by NASDAQ market, especially Shenzhen Growth Enterprise Market in China. It is quite different from the main board market in terms of listing threshold, supervision system, information disclosure, trader conditions and investment risks. Its main purpose is to support small and medium-sized enterprises, especially high-growth enterprises, establish a normal exit mechanism for venture capital and venture capital enterprises, provide a financing platform for independent innovation of the national strategy, and contribute to the construction of a multi-level capital market system.

basic features

the growth enterprise market is also called the second board market, that is, the second stock exchange market. In China, the main board refers to the Shanghai and Shenzhen stock markets. Growth enterprise market refers to the securities trading market that provides financing channels and growth space for small and medium-sized enterprises and emerging companies that are temporarily unable to list on the main board. It is an important supplement to the main board market and has an important position in the capital market. Growth Enterprise Market (GEM) appeared in the United States in the 197s and rose in the 199s. The NASDAQ market in the United States, which once hatched a number of Fortune 5 companies such as Microsoft, is representative. So far, more than 6, companies have been listed on Nasdaq, and more than 2, companies have been delisted. It can be said that GEM is a stock market with low threshold, high risk and strict supervision, and it is also a cradle for incubating technology-based and growth-oriented enterprises.

Most companies listed on GEM are engaged in high-tech business, which has high growth, but they are often established for a short time, and their performance is not outstanding, but they have great room for growth. Growth enterprise market is characterized by low entry threshold and strict operation, which helps potential small and medium-sized enterprises to obtain financing opportunities and promote their development and growth.

The purpose of developing GEM in China is to provide more convenient financing channels for SMEs and create a normal exit mechanism for venture capital. At the same time, it is also an important means for China to adjust its industrial structure and promote economic reform. For investors, the risk of GEM market is much higher than that of main board market. Of course, the return may be much greater.

governments all over the world have stricter supervision on the second-board market, and its core is "information disclosure". In addition, the regulatory authorities also help investors choose high-quality enterprises through the "sponsor" system.

The investment targets and risk tolerance of the second board market and the main board market are different, and under normal circumstances, they will not affect each other. And because of their internal relations, it will promote the further development and growth of the main board market.

trading rules

(1) The trading unit of GEM stocks is "shares" and the trading unit of investment funds is "shares". The number of securities to be declared for purchase shall be 1 shares (shares) or an integral multiple thereof. Securities with less than 1 shares can be declared and sold at one time.

(2) The quotation unit of securities is "price per share". The minimum change unit of "price per share" is RMB .1.

(3) The price of securities shall be limited by 1%. The price calculation formula of price fluctuation is: price fluctuation ceiling price = (1 price fluctuation ratio) × the calculation result of closing price of the previous trading day is rounded to RMB .1. There is no price limit on the first day of listing.