Growth enterprise market is an important part of the capital market. Its introduction is helpful to promote venture capital, promote the development of multi-level capital market and provide financing channels for small and medium-sized enterprises. Its role and function have been widely recognized by the world market. In order to study the significance of GEM to China's capital market, this paper first introduces the basic meaning and characteristics of GEM. By using the method of comparative study, this paper analyzes and describes the development of several major GEM markets in the world, including NASDAQ in the United States, alternative investment market in Britain and GEM market in Hong Kong, and their enlightenment to the construction of GEM market in China, and summarizes the experience. Then it analyzes the necessity and function of establishing GEM in China, which constitutes the theoretical basis of this paper. The article then expounds the significance of the perfection of China's securities market and multi-level capital market to the realization of GEM. Growth Enterprise Market (GEM) not only provides great potential, but also contains great risks. Therefore, it is of great theoretical and practical significance to analyze the risks of GEM and put forward relevant measures to prevent risks. Finally, the article describes the development status of China Growth Enterprise Market, and puts forward the key factors that affect the future development of the Growth Enterprise Market.

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