Can Lining Curve Companies Be Accepted By The Gem?

"Nike can,

No! "If you do not contact the context, at first glance, I think this is a very fussy sporting goods enthusiast.

As a matter of fact, this is the ridicule answer made by the Securities Times reporter about the continuous growth of earnings in the current gem listing standards.

The investment bank complained to reporters that he had been under great pressure recently, and that the hard won gem project had been reported, but he had to withdraw his application because of his declining performance.

The investment bankers believe that in the face of regulatory requirements for continued growth in earnings, it is the best standard for a listed company to draw a "smooth growth curve".

It is understood that the regulatory authorities on GEM evaluation criteria for the continued growth of earnings, the performance of listed companies to allow repeated performance, but in general, the track of growth must be like the "Nike" trademark shape, this curve track is also known as the "Nike curve".

For example, companies that plan to enter the growth enterprise market can have repeated performance in 2011, lower than 2010, but the subsequent 2012 performance will exceed 2010, which can be recognized as sustained growth; if 2012's performance continues to be below 2010, it will not be considered a sustained growth.

"The first one is the standard Nike curve, and the latter is called the Lining curve by everyone."

A lawyer from a securities industry told reporters that Nike curve represents the concept of growth enterprise's growth and value, and the growth expectations of GEM companies, but it has some limitations.

Regulators also believe that the threshold for growth of gem is a bit harsh on the continuous growth of profits.

"The scale of business income can be demanded, but the requirement for continuous profit growth is contrary to the law of enterprise growth cycle. If enterprises want to achieve scale growth, the corresponding brand promotion, management fees and R & D investment will increase, which will have an impact on the continuous growth of profits, and the contribution of these inputs to profits may lag behind."

The proposal suggests that the indicators for continuous growth of earnings should be adjusted appropriately.

And the domestic market is still entangled "

Compared with the "Lining model", the overseas market demand for listed companies is much more relaxed.

For example, Baidu and Sina, which are well-known Internet companies in China, will be unable to touch the doors of gem even if they are listed according to the current listing standards.

According to a statistics conducted by American researchers, the capital market of listed high-tech companies now pays more attention to their income than profits. Recently, the companies with low share in high-tech companies in the US market are losing money when they go public.

It is true that we are emerging and pitional markets, and we can not blindly copy the experience and practices of foreign markets.

However, in view of the fact that the performance of listed companies selected under the gem trial system is not satisfactory, it is worth reflecting on the relevant standards.

There is news that regulators have considered this.

On the third security training in 2012, the head of the securities and Futures Commission said that the industry and entry threshold of the growth enterprise market will be further liberalized in the future. The profit margin will be gradually weakened. If the profit decline is due to the impact of the industry cycle, and it will not be unable to meet the issuing requirements, it will not be denied because of the decline in profits.

The gem will run for three years.

The number has exceeded 350, and the first set up a strict delisting system.

At present, we should consider whether we should properly reduce the listing threshold and really put it on the agenda so as to meet the needs of listing SMEs in the new situation.