With the rapid development of China's capital market, the GEM has become a platform to attract more and more entrepreneurial companies to go public. After being listed on the GEM, the rules for the rise and fall of new stocks have attracted much attention. This article analyzes the rise and fall rules of new shares listed on the GEM from multiple perspectives such as policies, markets, and companies.
1. Policy perspective
At the policy level, my country's capital market has made many revisions to the listing system for new stocks, and different rules have been set for price limits. The current price limit for GEM is 20%.
2. Shopping mall perspective
From a market perspective, the listing of new stocks on the GEM is generally affected by various factors such as market psychology, funding, and sector popularity. Before listing, the company's financial situation, issue price, issuance volume, etc. will all affect the popularity of the new shares. On the day when new shares are listed, investors will also consider multiple factors such as the company's performance, prospects, and market conditions, thereby inducing stock price fluctuations.
3. Company perspective
After a new company is listed, the company must also consider how to control stock price fluctuations and protect its own interests and those of investors. Some companies will adopt diversified development strategies, making investors more trustworthy and willing to hold the company's stocks. Some companies may use equity incentives and other methods to encourage and retain outstanding employees and enhance the company's competitiveness.
In short, in the process of listing new shares on the GEM, the rise and fall of stock prices are affected by a variety of factors. Analysis from the three perspectives of policy, market, and company can provide a deeper understanding of these factors. For investors, they also need to pay attention to the company's financial status, business model, market competition and other information, and make adequate investment plans.