After the reform of the registration system of the Growth Enterprise Market, the standards for listing of enterprises are relaxed, and the speed of listing of enterprises will also be accelerated, which will improve the success rate of new shares on the Growth Enterprise Market. Under this circumstance, many investors can't help but ask: Is it risky for GEM to take a new approach?

is it risky to venture into the gem?

Compared with the main board, the risk of innovation in GEM is indeed higher, for the following reasons:

1 The most fundamental reason is the relaxation of listing standards, which allows some enterprises with poor fundamentals and greater uncertainty to go public.

2 In terms of the issue pricing method, although the GEM reform retains the fixed price-earnings ratio method, the more market-oriented inquiry method shows that it is the mainstream pricing method of the GEM under the registration system, so there is a risk of higher issue pricing.

3 as far as the price limit is concerned, there is no price limit in the first five trading days of GEM listing, so there is also a high risk of fluctuation in new shares on GEM.

From the above, we can know that the risk of innovation in GEM is indeed higher than that in the main board market. If you want to subscribe for new shares in GEM, you need to know about this.