Compared with the main board, the Growth Enterprise Market (GEM), or the second board, which will be launched soon, will give more emphasis to the market orientation of the work of issuance and listing examination, an official with the Shenzhen Stock Exchange (SZSE) said recently on the forum of Expanding China's Information Technology Market and Start-up Investment.
He said whether an enterprise can get listed on the GEM depends not only on whether it meets relevant regulations, but also on the quality and growth of the enterprise itself. On the whole, a hi-tech enterprise with good asset quality and growth potential, strong profit-making ability, and sustainable development capability, will have a higher possibility of getting listed on the GEM, he added.
When answering the question of whether a Sino-foreign joint venture or a wholly-owned foreign enterprise is allowed to get listed on the GEM, the official said there have been precedents of the listing of enterprises share-controlled by Hong Kong funds on the main board, which can be used by the GEM for reference. Currently, the laws and regulations for the GEM have yet been launched, and this question has not been made clear. But it can be said that the quality of enterprises is more important than the character of share rights.
When answering whether there is a limitation on the capital scale of the enterprises for listing, the official said the Consultative Document for the Rules of the GEM just have listed the down limit of the capital scale of listed companies and have not listed the up limit. On the Nasdaq, there are many large-scale listed enterprises, and the listing of large-scale enterprise on the GEM can serve to stabilize the market and maintain the liquidity. (Panorama)
(People's Daily 11/09/2000)
