Some experts attending the seminar on the Hi-tech Property Exchange and Venture Investment Mechanism held recently in Shenzhen believe that the specific scheme for the regulations of China's growth enterprises market (GEM) is expected to be launched in mid-October, when the third China Hi-tech Fair (CHTF) will be held.
For the investors, the establishment of the mechanism for the withdrawal of venture capital should be given top priority.
Liu Mingwei, director of China Hi-tech Achievements Exchange Center and president of China Hi-tech Property Exchange (CHTPE), revealed that the details about the GEM are still under discussion.
He hopes that the market will be launched before the third CHTF, as it will be favorable to both CHTPE and the companies planning to get listed on the GEM.
Li Wanshou, vice chief executive of Shenzhen Venture Capital Co., Ltd, said listing is the most ideal way for venture investment. But only a small number of start-ups can realize listing, and the large amount of venture capital can only withdraw in such ways as share rights transfer, etc.
He believes that the delay of the launch of the GEM make it difficult for venture capital to get listed in the mainland.
In addition, influenced by the bleak performance of technology shares listed on Nasdaq，several Nasdaq-listed companies from the mainland, including Sohu.com, Sina.com and Netease.com, are in danger of delisting, making domestic hi-tech companies flinch from seeking overseas listing.
He believes that before the launch of the GEM, shares transfer is no doubt the most ideal channel for the withdrawal of venture capital.
(People's Daily 05/21/2001)
