International Comparison of the Development of Venture Capital Industry and Its Implications

Author: Fang Hanting
Publisher:
Publish Date: 2004-09-01
Features: With the warming of the global economy and the relative strength of capital markets, the substantial financial risks accumulated due to financial institutional arrangements have also been fundamentally released. Additionally, with the improvement of China's financial capital regulatory system, such as the establishment of the China Banking Regulatory Commission in early 2003 alongside the existing People's Bank of China, Securities Regulatory Commission, and Insurance Regulatory Commission, the GEM has once again attracted attention. In fact, China's financial regulatory authorities have never explicitly stated that they would not establish a Chinese version of the GEM, but there is indeed no clear timeline. The reasons for this situation can be summarized in multiple aspects, but the fundamental issue remains what problems the Chinese GEM needs to address and the optimal timing to resolve these issues. This paper re-examines and analyzes these two interrelated questions. The purpose is to clarify some ambiguities about the GEM and provide the necessary theoretical support for its early launch.