New development of Gem

Has officially run about 200 days of China's gem, to the domestic capital market has brought great surprises. It also gives foreign peers a more than a few. At present, at the 13th session of China Beijing International Science and Technology Industry Exposition of China Financial Summit, the participants of the foreign capital market representatives, unanimously expressed such a view: the overseas capital market is China's gem beneficial supplement, is a disaster-avoidance channel.

For China Gem, these overseas capital market is "big wolf" or "catfish", it remains to be observed.

More than 200 days of joy and sorrow

In the industry, China's gem in the more than 200 days since the birth of the market has brought many surprises, but also brought some concerns.

First, the development of China's gem is very fast. As of May 24, there are 82 enterprises in the gem market listed transactions, the speed of the listing not only exceeded the SME board, but also more than the Hong Kong gem. Since November 1999, the number of listed enterprises in Hong Kong's gem is 174.

Second, China's gem market has become the main battlefield of venture capital exit. As of May 24, has been listed and has been a total of 88 gem enterprises, including the number of venture investment support Enterprises 51, accounting for the entire GEM Enterprise total of 58%.

Third, China's gem market has greatly stimulated the entrepreneurial passion of entrepreneurs. Gem Daily tells the new wealth myth, its huge wealth effect will inspire entrepreneurial passion.

At the same time, China's gem also appeared some concern to the industry, such as high P/e problem. As of May 24, China's gem market, the average price-to-earnings ratio of 64.3 times times, much higher than the U.S. Nasdaq market, the Hong Kong gem market average valuation, but also higher than the SME board market valuation level. The high price-earnings ratio depends on the high growth of the enterprise, and from the annual report of the first 28 listed companies of the gem, there is still a small gap between the performance and the investors ' expectation.

Liu Nue, vice chairman of China Securities Regulatory Commission, at the opening of the 13th session of the China Financial Summit, once again clarified the direction of China's gem development. Liu Nue said that in the post-financial crisis era, the world industrial structure and economic and social development path is undergoing profound changes, with independent intellectual property rights, innovative new industries will become the leading global economic growth. The current and future period will continue to encourage and support enterprises with strong scientific and technological innovation ability to use capital market to accelerate the development, through expanding and enriching the capital market service technology innovation Way, path and channel, promote the effective integration of all kinds of innovative resources and capital market, and implement the function of independent innovation of gem service. We should cultivate and support the development of strategic emerging industries, explore the development path of OTC market in line with national conditions, and actively study the mechanism of the transfer board between different levels of market, and gradually form an orderly capital market system.

"Diversion channel" of GEM

NYSE Euronext, the London Stock Exchange and Deutsche Exchange are no strangers to Chinese technology companies, and a large number of domestic technology companies are active in these markets and are prominent.

Prior to this, China's gem has not yet been launched to the overseas capital market listing has been a lot of domestic science and technology enterprises only choice. However, the situation is now very different, these foreign capital market representatives generally said, "Overseas capital markets will be China's gem market beneficial supplement."

Peng, representative of the Beijing representative Office of NYSE Euronext, introduces more than 55 Chinese companies listed in NYSE Euronext, excluding 18 traditional large state-owned enterprises, such as PetroChina, China Mobile and Unicom, the rest are private enterprises in China.

There are also many Chinese companies listed on the London Stock Exchange, and they are performing well. The index of Chinese companies currently listed in the UK's Alternative Investment Market (AIM) is 16% higher than Aim's own index, and these companies grew by more than 55% per cent this January-April, Zhu, Asia Pacific president of the London Stock Exchange.

"We come to China to provide an auxiliary financing channel for Chinese SMEs." In other words, China has nearly millions can be listed enterprises, even if China's capital market every year 4,000 enterprises listed, but also have to wait 200 years to all of these enterprises to enter the capital market, all the 200-year small and medium-sized enterprises can be listed in Germany. "The representative of Deutsche Exchange Group Beijing representative Office does not have the sword rainbow to say, since 2007, has already had 20 Chinese enterprises to be listed in the Exchange, the diversion will become the Chinese capital market a very good" the channel ", provides the Chinese small and medium-sized Enterprise to provide a low-cost, the fast listing place.

It is worth mentioning that China's Taiwan region's capital market also to the mainland's technology companies to throw an olive branch. "Mainland and Taiwan are the same, Taiwan's capital market can not only provide reference to the mainland's capital markets, but also a good listing channel for mainland enterprises." "To attract mainland companies to market in Taiwan, Taiwan Polaris Financial Group vice President Huang Big play affection card," The current technology enterprises in mainland China gem market need to queue for a long time team, some enterprises will often choose Europe and the United States capital market, but many experts believe that these enterprises to the European and American listed there are language and cultural barriers, If you go to Taiwan, there is no such problem, because everyone is Chinese. ”

Huang said that Taiwan's capital market is very suitable for SMEs, high-growth enterprises and technology enterprises financing. Taiwan's capital is very abundant, and many investors themselves are successful entrepreneurs, they have a deeper understanding of High-tech products. "Therefore, technology enterprises in Taiwan's capital market has an advantage, although the mainland's gem is very active, but want to be listed on the gem too many companies."

Look forward to "catfish effect"

In the view of the representatives of foreign capital markets, to support their competition with the Chinese gem market, in addition to overseas investors favor the "Chinese concept", there are foreign capital markets, institutional maturity, low financing cost advantages, especially in relation to the Chinese gem, technology companies in overseas listing time cost is obviously much lower.

Peng said that Chinese technology companies listed in the first choice is the domestic capital market, but some high-tech companies may be listed in overseas capital markets more easily favored by investors, such as internet companies, clean technology companies, such as there are precedents to follow.

In addition, the foreign capital market system norms, low financing costs have been repeatedly mentioned by these representatives.

Zhu, the company on the London Stock Exchange on the listing of about 4-6 months, the entire IPO upfront cost is about 1 million U.S. dollars, in addition to the financing amount of 3%-5% to the brokerage fees, after the listing of refinancing no longer charges, the annual fee is fixed at about 6000 U.S. dollars.

The cost of listing at the exchange is clearly lower. Without the sword Rainbow said, the German Federal Ministry of Finance, Germany, the Government allocated to the budget every year, for the listed companies in fact similar to the cost of administrative office fees, business listing costs are very low, the exchange fees from 1500-5500 euros, charging standards are relevant laws and regulations, " The Anglo-American exchange's listing costs are more than € 100,000.