It is opportune to launch the GEM right now: experts
By Panorama
May 15, 2001
The Fourth China Beijing Hi-tech International Week sponsored a large-sized forum Monday.
More than 100 experts, including the former chairman of China Securities Regulatory Commission (CSRC) Zhou Zhengqing and the vice minister of science and technology Deng Nan, as well as the representatives from venture investment institutions, securities institutions and hi-tech enterprises attended the forum. The attendees appealed that it is opportune to launch the Growth Enterprise Market (GEM) or the second board right now.
Zhou Zhengqing said relevant governmental departments should effectively promote the launch of the GEM and speed up the combination of hi-tech industry with the capital market. But the work for the stipulation of the laws and regulations of the GEM should be done better and the regulation should be strengthened, he said.
Deng Nan believes that all is ready except what is crucial for the launch of the GEM. People have had sufficient knowledge on the necessity and feasibility for the launch of the GEM. The technological preparations have been finished and the laws and regulations have basically taken shape. To launch the GEM at an earlier date is of great importance for developing hi-tech industry, attracting hi-tech talents to retune home for start-up and stably starting the market by taking the opportunity of sluggishness of the overseas second board markets, she said.
Renowned economist Wang Guoguang said the GEM should not be denied for the fluctuation of the Nasdaq and the assessment of the success of a stock market should be based on whether the its function has been brought into full play rather than on the movements of stock indices. He said the time is basically ripe for the launch of the GEM. As the companies to be listed on the GEM have the characteristics of good quality, sound operational mechanism and better growth potential, the risks involved in the GEM in short-term will be smaller than those involved in the A-share markets. On the contrary, the risks will be even bigger if the second board is launched later, he said.
--Panorama (p5w.net)
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