The GEM is a section of my country's stock market, which is suitable for some new companies to raise funds in the stock market. Compared with A-shares, the GEM listing threshold is relatively low, and the entire listing process is relatively simple and convenient, which seems to be very beneficial to start-up companies. However, in fact, although listing on the GEM is relatively simple, there are actually many challenges and thresholds that need to be overcome. So, how easy is it to go public on GEM?
First of all, from the perspective of qualification threshold, GEM is indeed much lower than A-shares. The minimum net assets required for GEM listing are 30 million yuan, while A-shares need to reach more than 50 million yuan. In addition, there are some relatively loose requirements for GEM listing, such as the company's nominal share capital planning must not be less than RMB 100 million.
Secondly, from the perspective of the listing process, GEM listing is indeed relatively easy. The listing time is more convenient than A-shares, taking about 4-6 months. Among them, the most time-consuming link is the IPO review link of the China Securities Regulatory Commission, which takes the longest time. If the review can be passed, the listing will proceed smoothly.
However, listing on GEM is not without its difficulties. First of all, the market mechanism of GEM is relatively complex, with large stock price fluctuations, small trading volume, and high overall risks. At the same time, the success of GEM listing is also related to the company's past financial status, performance goals and other factors. If some start-up companies have problems such as tight capital chains and lack of profitability during their operations, the post-IPO trend may not be satisfactory.
In addition, because the threshold for listing on the GEM is relatively low, the number of companies that have withdrawn their requests or discontinued IPOs is also alarming. On the one hand, companies that are too anxious may not fully have the funds, resources and reputation required for listing, so they will face problems such as broken capital chains and falling stock prices. On the other hand, adjustments to regulatory policies and review processes will also affect the pace of listing of companies.
In general, listing on the GEM does have many advantages and attractions compared to A-shares, and is suitable for financing and development of some potential new companies. But at the same time, companies also need to conduct a comprehensive assessment and planning of their own strength and development prospects before going public. Only in this way can we give full play to our advantages in listing on the GEM and achieve our own rapid development.