Development Trend of Growth Enterprise Market Since March 3rd, 2009, a series of regulations related to Growth Enterprise Market, such as Interim Measures for the Administration of Initial Public Offerings, Rules for the Listing of Growth Enterprise Market, Interim Provisions for the Management of Investor Suitability of Growth Enterprise Market, Prospectus of Growth Enterprise Market Company and Application Documents for the Listing of Initial Public Offerings, have established the basic institutional framework of China's Growth Enterprise Market and added new investment and financing relationships. All these changes will focus on the following aspects: (1) Growth Enterprise Market endows the market with market segmentation, innovation elements and growth threshold, and it is "precious". China Growth Enterprise Market serves growth-oriented start-ups and focuses on supporting enterprises with independent innovation ability to go public. At present, among 149 companies applying for GEM, electronic information industry, biomedicine, new materials and modern service industry account for 37%, 10%, 12% and 9% respectively, accounting for 68% in total; Mainly concentrated in electronic information, new materials, biomedicine, modern services, new energy, cultural and educational media, modern agriculture and other emerging industries. Manufacturing only accounts for 15%. Comparatively speaking, among the 297 small and medium-sized enterprises, there are 226 manufacturing enterprises, accounting for 76%. The listed companies on GEM are mainly technology-intensive innovative enterprises, and their core competitiveness lies in introducing the new combination of production factors into the production system and concentrating on exploring new markets, such as the new media industry of Focus Media. New organizations, such as "Home Inn" chain economy hotels; New sources, such as "5 1job" human resource intermediary service; A new technology, such as "Baidu" search engine; A new product, such as the online game of "Shanda Network"; A new way, such as "New Oriental" English training; It is often manifested as one or several innovative elements, and it does not need the capital-intensive of traditional manufacturing enterprises, and the scale can be small and medium. As the saying goes, "the mountain is not high, the fairy is not famous." According to wind's statistics, as of June 65438+1October 65438+June 2009, the average share capital of A shares in Shanghai Stock Exchange was 2544049300 yuan; The average share capital of the 28 companies listed on the Growth Enterprise Market that have completed the issuance is156,563,500 yuan, which is only 6. 15% of the average share capital of A shares of the Shanghai Stock Exchange. At the same time, the GEM listing rules stipulate that the GEM has a high growth threshold, requiring the issuer to make continuous profits in the last two years, and the accumulated net profit in the last two years is not less than10 million yuan, and it continues to grow; Or profit in the last year, and the net profit is not less than 5 million yuan, the operating income in the last year is not less than 50 million yuan, and the growth rate of operating income in the last two years is not less than 30%. Due to the law of diminishing marginal utility, the marginal income of production factors of growth enterprises is at a higher level than that of mature enterprises, and the market unit price of growth enterprises is higher than that of mature enterprises. In 2007 and 2008, the average return on equity of A shares in Shanghai Stock Exchange was 8.58% and 2.36% respectively. In 2007 and 2008, the average return on equity of 28 listed companies on GEM was 37.7% and 3 1.46% respectively, which was 4.39 times and 13.33 times that of A shares in Shanghai Stock Exchange. This shows that the GEM is mainly composed of small and medium-sized stocks with higher prices, which are small in scale but high in value, showing a "precious" nature. Judging from the successful overseas GEM, the average P/E ratio of GEM is generally higher than that of the main board market, and the P/E ratio of NASDAQ in the United States is also much higher than that of NYSE. Before the financial crisis, the average price-earnings ratio of Nasdaq in the United States was about 34 times, maintaining a premium of about twice that of the main board. From the domestic practice, the average P/E ratio of A shares in Shanghai Stock Exchange in June 65438+1October 65438+June 2009 is 25.85; The average P/E ratio of small and medium-sized board is 40.3, which is higher than the main board market's 55.90%. The average P/E ratio of 28 listed companies on GEM is 55.7, with the highest being 82.2 for Dinghan Technology and the lowest being 40 for Shanghai Jiahao, which is 1 15.47% higher than the main board and 38.2 1% higher than the small and medium-sized board. (2) GEM enjoys the bonus of start-ups, the bonus of reform and opening-up and the biggest bonus of developing countries, and has the nature of "growth". From the perspective of enterprise development, among the 28 companies listed on the Growth Enterprise Market, the average compound growth rate of operating income from 2006 to 2008 was 55.32%, with a maximum of 97.30%, and the average compound growth rate of operating profit was 89.84%, with a maximum of 337.54%. GEM listed companies raise capital through external financing to achieve expanded reproduction. After Baidu's search service model listed on Nasdaq was recognized, its annual pre-tax profit growth rate from 2005 to 2008 was 300%, 529. 17%, 108.28% and 66.6 1% respectively. From the perspective of system and mechanism, the establishment of GEM is a consistent major strategic decision of the CPC Central Committee and the State Council. From the central government's decision on improving the socialist market economic system, the law on promoting small and medium-sized enterprises, article 9 of the state and article 36 of the non-public economy, to the Outline of the National Medium-and Long-term Scientific and Technological Development Plan and the Interim Measures for the Administration of Venture Capital Enterprises, it is required to actively promote the construction of the GEM market. In terms of market demand, China is the largest developing country, with huge investment and financing demand and rapid growth. In 2008, the fixed assets investment of the whole society was 1, 722,965,438+0 billion yuan, an increase of 25.5% over the previous year; The balance of various deposits was 47,844.4 billion yuan, an increase of19.3% over the previous year; The balance of various loans was 32,004.9 billion yuan, an increase of17.9% over the previous year; Listed companies raised a total of 339.6 billion yuan through the domestic market in the whole year; In the whole year, enterprises issued bonds of 2,052 billion yuan, an increase of 20. 12% over the previous year. The above three factors work together, and it is only a matter of time before China Growth Enterprise Market surpasses the main board market. This is not uncommon in foreign countries. The trading volume of NASDAQ 1994 exceeds that of new york Stock Exchange, and that of NASDAQ 10.7 trillion US dollars 1999 exceeds that of new york Stock Exchange for the first time, making it the largest securities market in the world. At the same time, catching up with Nasdaq is not a dream. According to relevant statistics, there are 9.7 million small and medium-sized enterprises in China, even if only 10% of enterprises are relatively standardized, there are nearly 1 10,000; Even if only 1% of enterprises go public, there are still 10000 companies, exceeding the 5556 in the history of Nasdaq. (3) Growth Enterprise Market bears the transformation of enterprises, technological revolution and industrial upgrading, and develops the personality of "delisting". Some studies have found that innovative enterprises have a thrilling jump. If innovative enterprises can cross market barriers, they will form a market force, occupy the market quickly in a short time, and obtain excess profits, which will advance by leaps and bounds like Microsoft, Baidu and Apple. Otherwise, it may quickly enter a period of rapid decline from a period of rapid growth, and even face extinction like many VCD enterprises in China. Innovative enterprises should not only close the market well, but also accurately judge the development trend of technology. Today's world is on the eve of scientific and technological innovation breakthrough and new scientific and technological revolution. In the scientific fields such as the regulation and transformation of material energy, the regulation and transmission of quantum information, the evolution and artificial synthesis of genetic variation of life genes, the brain and cognition, the evolution of the earth system, and in the strategic fields such as energy, resources, information, advanced materials, modern agriculture and population health. The harbinger of some major scientific problems and revolutionary breakthroughs in key technologies has emerged. If it cannot be dealt with in time, start-ups may suddenly decline. For example, a film company in A-share has subverted the traditional photography technology due to the emergence of digital photography technology, and its market capacity has been greatly reduced. In 2008, the operating income decreased by 65,438+06.04% and the net profit decreased by 93.03%. Innovative enterprises should also solve industrial upgrading. Small and medium-sized enterprises are often concentrated in a certain sub-industry, subject to consumer preferences, market competition and industrial policies. Theoretically, they have the greatest growth potential and always face industrial upgrading. Historically, the world economy has experienced three major industrial upgrades, from agriculture to industry, from heavy chemical industry to light industry, and from industry to service industry. For example, when the concept of network became popular, there were many network enterprises, the network bubble burst and a large number of network companies closed down. The above shows that growth enterprises are immature in the process of growth, and will die in the process of growth, with a "life cycle". According to the investigation of 442 venture capital projects in the United States, 26% of them withdrew in the form of loss cancellation, with a loss rate of 37%. Therefore, GEM enterprises will eventually face transfer or delisting. The listing rules of GEM stocks implement a mandatory delisting system for companies listed on GEM. Judging from the delisting standards, in addition to the delisting standards stipulated by the main board, the new delisting standards of the GEM also include whether the listed company's financial report is rejected and its net assets are negative. The cumulative trading volume for 65438+0.20 consecutive trading days is less than 65438+0 million shares. Once any of the above delisting criteria is triggered, it will face the fate of delisting. From the perspective of delisting, GEM companies no longer need to enter the agency share transfer system like the main board after delisting; Only those who meet the requirements can entrust the sponsoring brokers to apply to China Securities Industry Association for quotation transfer in the agency share transfer system, so that it is possible to directly withdraw from the market. Judging from the speed of delisting, GEM started the rapid delisting procedure, shortened the delisting time and suspended trading for a long time. This shows that China Growth Enterprise Market has the personality of "delisting".