Shang Fulin, chairman of China Securities Regulatory Commission, announced the launch of NASDAQ-style growth enterprises market, or GEM, on Friday.
The launch is considered a milestone for the Chinese capital market. Since it was first initiated in 1999, ten years have passed.
Shang Fulin points out that more efforts should be done to stabilize the GEM and prevent risks.
"The Growth Enterprise Market is a new board and it requires exploration and constant improvement. We are convinced that the GEM's success is not something that can be achieved overnight, and its development is not going to be an easy road. But we strongly believe that with the leadership of the Central government and support from various parts of society, as well as cooperation from the stock market, this brand new market will surely pay off."
Experts say that the GEM is designed to attract funding for the kind of innovative enterprises the government wants to nurture, such as software companies, pharmaceutical firms and creative industries.
At the inaugural ceremony, Zhu Hongren, chief engineer with China's Ministry of Industry and Information Technology, said the GEM should serve the development strategy for the whole cou
