The GEM registration system refers to a more liberal company listing system. As long as it meets relevant requirements, it can be listed. Before the registration system was implemented, an approval system was adopted.

The GEM registration system started on June 12, 2020, in accordance with the "GEM Initial Public Offering Stock Registration Management Measures (Trial)".

At the same time, the China Securities Regulatory Commission, Shenzhen Stock Exchange, China Securities Depository and Clearing Corporation Limited, Securities Industry Association, etc. issued relevant supporting rules.

The GEM registration system means that securities issuance applicants disclose all information and materials related to securities issuance in accordance with the law, prepare legal documents, and submit them to the competent authority for review. The competent authority is only responsible for reviewing whether the information and materials provided by the issuance applicant have been fulfilled.

A system of information disclosure obligations.

After the GEM implemented the registration system, investors' permission to open the GEM has also changed. According to the "Implementation Measures for the Management of Suitability of Investors on the GEM of Shenzhen Stock Exchange (Revised in 2020)", securities accounts opened in the first 20 trading days and

The average daily assets in the capital account must not be less than RMB 100,000 and the applicant must participate in securities trading for 24 months.

It is worth mentioning that after the GEM implements the registration system, the trading rules will also change. For example, the price increase and decrease will change from 10% to 20%. At this time, investment risks will increase; and there are newly listed GEM stocks.

There are no price limits on price increases or decreases during the five trading days. Investors should pay attention to the above.