What does the GEM registration system mean?

Growth enterprise market registration system refers to a more free company listing system, which can be listed as long as it meets the relevant requirements. Before the registration system is realized, the approval system is adopted. Growth enterprise market registration system began in June, 2020 12, according to the administrative measures for the registration of initial public offerings of growth enterprise market (for trial implementation). At the same time, China Securities Regulatory Commission, Shenzhen Stock Exchange, China Clearing and Securities Industry Association have issued relevant supporting rules.

Growth enterprise market registration system refers to a system in which all information and materials related to securities issuance are made public by the securities issuing applicant according to law, made into legal documents and submitted to the competent authority for examination, and the competent authority is only responsible for examining whether the information and materials provided by the issuing applicant have fulfilled the obligation of information disclosure.

After the implementation of the registration system of GEM, the authority of investors to open GEM has also changed. According to the Implementation Measures of Shenzhen Stock Exchange on the Appropriateness Management of Growth Enterprise Market Investors (revised in 2020), the assets of securities accounts and capital accounts in the first 20 trading days are not less than RMB 654.38+10,000 per day and they have participated in securities trading for 24 months.

It is worth mentioning that the trading rules will also change after the GEM is registered. For example, the price will change from the original 10% to 20%, and investment will increase risks at this time; Moreover, the newly listed GEM stocks have no price limit in the first five trading days, which investors should pay attention to.