GEM Listed Companies Are Mostly In The Growth Stage And Invest In The Long Run.

Recently, a topic which made the market very panic is to explore new lows on GEM, and this time it has fallen out of a new record since the stock market crash. Seven continued to fall. Since the second half of 2016, regulators have been putting heavy punches on the issue of risk assets leveraged. However, this situation did not happen. Following the collapse of the gem last year, the gem fell again.

In the second half of 2016, the issuance of new shares (IPO) increased significantly. In November, it increased from 27 to 28 per month to 52 in 2016. 240 new shares were issued during the year, and 280 were issued under the approval of the company. Up to now, the total number of A shares has exceeded 3000. The rapid growth of IPO has an impact on the overall market, but it has a strong impact on the gem, because the main board market is mainly institutional investors such as insurance funds, social security funds, and so on. This part of the funds will not go to the secondary stock market that doubled or even doubled over the market, and the role of capital diversion is not obvious.

Analysts believe that IPO Speed up will break the weak balance of market stock capital. According to previous media reports, the queuing IPO is expected to be basically completed in a year, so the market supply pressure is obvious, the most obvious impact is the gem and small and medium-sized boards. Shen Wan Hongyuan analysts said that the IPO reboot increased the supply of stocks, especially small and medium-sized stocks, and many of the GEM stocks gradually became less scarce, and now the price earnings ratio of fifty or sixty times is still far overvalued, "down is also normal."

Under such circumstances, Gem Is it worth investing? Here, I would like to make a point of view that the enterprises listed on the gem are mostly in the growth stage, with a smaller scale and relatively low operating stability. Generally speaking, the risk of investors is greater than that of the main board. Therefore, they are more suitable for investors with mature investment philosophy, strong risk tolerance and market analysis ability. But any investment is both risky and profitable. First, before deciding to participate in the growth enterprise market transaction, investors must make a careful judgement of their risk identification ability and risk bearing ability. If we want to understand the risk characteristics of the GEM market and the characteristics of the GEM listed companies, we should pay attention to the risk hints of the growth enterprise market.

The following types of risks deserve investors' attention:

One is the risk of delisting caused by bad management or other reasons; the two is the risk of large fluctuation of stock price; the three is the credit risk of listed companies and intermediaries; the four is the venture enterprises. Technology risk The five is the change of trading rules and the risks brought about by the suspension. The six is the risk of blind investment and illegal transactions by investors. Finally, and most importantly, the valuation of venture enterprises is the difficulty and key point of investing in the gem. Investors must be cautious in analyzing and rationally judge and participate in the growth enterprise market transactions cautiously on the basis of reasonable valuation.

In view of the above risk factors, investors should pay attention to the following matters. First of all, before entering the market, we must seriously read and sign the risk disclosure book on stock market investment in the gem. This purpose is to invite investors to participate in the stock market investment in the GEM market from the actual situation of risk bearing capacity and so on. Secondly, the regulatory authorities require the broker to strengthen customer management and service work, and comprehensively assess the risk tolerance of investors.

In this regard, investors should actively cooperate with the management of securities companies, while requiring securities companies to explain in detail the knowledge, trading rules and special risks of the gem. In addition, the regulatory authorities are actively constructing an investor education system with rich levels, various forms and wide coverage, striving to achieve "enough risk and rules". Investors can understand, understand and familiarise themselves with various rules and knowledge of the gem.

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