The first floor says it is the Growth Enterprise Market, but I am not very clear about it. I will provide some information about the Growth Enterprise Market for your reference only: The Growth Enterprise Market is also called the second board market, that is, the second stock trading market. It refers to a market other than the main board that is temporarily unavailable.

The securities exchange market, which provides financing channels and growth space for listed small and medium-sized enterprises and emerging companies, is an effective supplement to the main board market and occupies an important position in the capital market.

Most of the companies listed on the GEM market are engaged in high-tech businesses and have high growth potential, but they are often established in a relatively short time and are smaller in scale and have less outstanding performance.

The biggest feature of the GEM market is its low entry threshold and strict operation requirements, which helps potential small and medium-sized enterprises obtain financing opportunities.

The purpose of developing the GEM market in China is to provide more convenient financing channels for small and medium-sized enterprises and create a normal exit mechanism for venture capital.

At the same time, this is also an important means for our country to adjust its industrial structure and promote economic reform.

For investors, the risk of the GEM market is much higher than that of the main board market.

Of course, the rewards could be much greater as well.

Governments of various countries have stricter regulations on the second board market.

Its core is "information disclosure".

In addition, regulatory authorities also use the "sponsor" system to help investors choose high-quality companies.

The investment objects and risk tolerances of the secondary board market and the main board market are different. Under normal circumstances, the two will not affect each other.

And because of their inherent connections, they will promote further activity in the motherboard market.

In the long history of securities development, the GEM initially appeared as a market image corresponding to the main board market with large mature companies, with small and medium-sized companies as its main targets.

At the end of the 19th century, some small companies that did not meet the listing standards of large exchanges could only choose over-the-counter markets and local exchanges as listing venues.

By the 20th century, many local exchanges gradually disappeared, and there were many irregularities in the OTC market.

Since the 1960s, regions such as North America and Europe, represented by the United States, have begun to vigorously create their own GEM markets in order to solve the financing problems of small and medium-sized enterprises.

Since its development, the GEM has developed into a market that helps small and medium-sized emerging companies, especially high-growth technology companies, to raise funds.

According to the relationship with the main board market, the global second board market can be roughly divided into two types of models.

One type is "independent type".

Completely independent from the motherboard, it has its own distinct role.

The world's most successful secondary market - Nasdaq (Nasdaq) in the United States falls into this category.

The Nasdaq market was born in 1971. Its listing rules are much simpler than those of the New York Stock Exchange, and it has gradually become the securities market with the largest number of high-tech listed companies in the United States.

As of the end of 1999, there were 4,829 listed companies in the country, with a market value of up to 5.2 trillion US dollars, of which high-tech listed companies accounted for about 40%. A number of well-known high-tech companies such as Cisco, Microsoft, and Intel have emerged.

Tech giant.

"Thirty years to the east, thirty years to the west." Thirty years later, the Nasdaq market was fully fledged. The total number of listed companies was 60% more than that of the New York Stock Exchange. The stock trading volume exceeded the New York Stock Exchange in 1994.

The other type is "affiliated".

Affiliated to the main board market, it aims to cultivate listed companies on the main board.

Listed companies on the second board can be upgraded to the main board market after they mature.

In other words, it serves as the “second echelon” of the main board market.

Singapore's Sesdaq falls into this category.

The latest second-board market to be established is the Hong Kong Growth Enterprise Market.

On November 25, 1999, the Hong Kong GEM, which had been brewing for 10 years, finally came into being.

It is positioned to serve small and medium-sized high-growth companies in the entrepreneurial stage, especially high-tech companies.

As of the end of April this year, there were 25 listed companies in China, mostly Internet, computer, and telecommunications companies.

If a company wants to be listed on the Hong Kong Stock Exchange, it must have a profit of HK$50 million in the past three years. However, the GEM does not set a profit bottom line, and only requires the company to have an "active business record" for two years.

If the founder is already well-known in the industry, then this two-year "record" can be dispensed with.

An authoritative person from the Hong Kong Stock Exchange once said wittily that if Bill Gates came out to re-register a company, the GEM would happily accept it immediately.

Looking back at the development history of GEM, the 1960s can be called the budding period of GEM.

In 1961, in order to promote comprehensive regulation of the securities industry, the U.S. Congress required the Securities and Exchange Commission to conduct specific studies on all securities markets.

Two years later, the Securities and Exchange Commission abandoned its study of the full securities market and instead focused on the over-the-counter market, which was then hazy and fragmented.

The SEC proposed an "automatic operating system" as a solution, and it will be managed by the National Association of Securities Dealers (NASD).

In 1968, the automatic quotation system was successfully developed, and NASD was renamed the National Association of Securities Dealers Automatic Quotation System (NASDAQ system).

On February 8, 1971, the NASDAQ market was officially established. On that day, full operation of the NASDAQ system was completed. The central quotation system displayed the market prices of 2,500 securities.

Until 1975, NASDAQ established new listing standards, requiring all listed companies to separate companies listed on the NASDAQ market from OTC securities.