Analysis of Financing Risk in China's GEM

Abstract

The establishment of GEM in China has provided new means of absorbing capital for China's newly developing small and medium-sized enterprises and emerging industries, and has also created a new road for the development of China's socialist market. Gem listed companies are ranked below the main board of the second largest stock market in China refers to the Shenzhen GEM. In 2009, Chinext was launched. Its establishment has attracted attention from all sides. Its establishment provides a financing platform for many small-scale enterprises and gives potential enterprises greater development opportunities. At the same time, opportunities and risks coexist. It is still relatively young, and its problems are obvious[1]. The Gem market is different from the main board market. Generally speaking, the probability of financial risk is greater. Financial Crisis is hidden in the key link of the financial operation of enterprises. Once discovered, it will lead to the normal operation of enterprises, to take timely measures to control.