Why has the GEM Board reform attracted another wave of attention? 10 Shenzhen Stock Exchange Two Sessions representatives share their reasons based on personal experiences

Caixin News, March 8 — (Reporter Lin Jian) On March 6, CSRC Chairman Wu Qing revealed at an economic press conference that the overall plan for deepening the GEM (Growth Enterprise Market) reform has been basically shaped and will be announced at an appropriate time after further refinement. Following Wu Qing’s remarks, the market has maintained high interest in GEM reform, focusing on two questions: what signals does this reform send? and which reform pathways have been referenced to help listed entities develop? Coinciding with the National Two Sessions, ten representatives and committee members shared their insights.

For a long time, as the core board serving innovative and growth-oriented companies, every rule optimization and mechanism upgrade on the GEM has resonated with industry capital, institutional investors, and innovation entrepreneurs alike. These ten representatives from fields such as biomedicine, new materials, high-end manufacturing, and digital economy have personally demonstrated how GEM empowers sci-tech enterprises comprehensively. In their view, the Shenzhen Stock Exchange and GEM’s attractiveness continues to grow.

They believe that current reforms focus on clarifying functional positioning, making listing standards more inclusive, improving review efficiency, and enhancing ongoing supervision. These measures respond to market demands for better adaptability and attractiveness of the sector, reflecting deep expectations from all parties for the capital market to serve high-quality real economy development.

The CSRC also stated that this reform will proceed gradually with a focus on quality, strictly control the entry points for issuance and listing, hold intermediaries accountable, prevent false or rushed applications, and promote a healthy interaction between reform, functionality, and market stability.

Consensus 1: Full-cycle financing supports innovation and growth

The GEM provides full-cycle funding support for sci-tech enterprises through diverse financing tools, becoming a vital guarantee for R&D, capacity expansion, and global deployment. This is a common understanding among the participants. From IPOs, private placements, convertible bonds to mergers and acquisitions, GEM has built a comprehensive financing system covering all development stages from clinical trials and industrialization to internationalization. The representatives generally agree that this system precisely meets the needs of innovative companies, ensuring capital flows directly to R&D and industry frontlines.

Ding Lieming, member of the CPPCC and chairman of Betta Pharmaceuticals, mentioned that since listing on the GEM in 2016, the company has continuously raised funds through IPOs and private placements, supporting multiple new drugs to gain approval and enabling Bimona to achieve simultaneous global launch of innovative drugs in China. The GEM’s targeted positioning for innovative drug companies, along with the reform of the registration system and increased institutional inclusiveness, has optimized refinancing rhythms and effectively matched long-term R&D needs.

Kong Lingyong, chairman of DfNano and a National People’s Congress (NPC) deputy, noted that listing has opened direct financing channels, increasing the company’s capacity from 30,000 to 450,000 tons per year. Capital has helped drive technological iteration and forward-looking layout, creating multiplier effects for industrial development.

Yan Dapeng, vice chairman of Rike Laser and NPC deputy, said the company raised 1.22 billion yuan in its initial public offering to support high-power laser R&D and capacity expansion. By 2024, nearly 6,800 units of products over 1,000 watts will be shipped, with overseas revenue growing nearly 40%.

Yuan Yuyu, chairman of Maipu Medical, introduced that the company listed under the second set of registration standards, raising 250 million yuan for R&D and capacity expansion, and plans to enter the neurointervention track through acquisitions, driving both internal growth and external expansion.

Zhou Qunfei, chairwoman of Lens Technology and CPPCC member, said that after listing, financing channels have been fully expanded, with total assets multiplying compared to initial listing, providing stable capital for global expansion and technological breakthroughs.

Shao Zengming, chairman of Liliang Diamonds and NPC deputy, also pointed out that GEM’s direct financing addresses the long capital recovery cycle problem for sci-tech enterprises, providing a solid guarantee for R&D and capacity expansion.

Consensus 2: Institutional positioning adapts to diverse development needs of sci-tech enterprises

GEM adheres to the “Three Innovations and Four New” positioning, using diversified and inclusive institutional design to break the single profit indicator constraint, accommodating different types and stages of innovative enterprises. This is a shared feeling among the representatives.

Yao Lijun, founder of Jiangfeng Electronics and CPPCC member, said GEM has broken the requirement for profitability, opening channels for unprofitable, red-chip, and special voting rights companies. By 2025, the third set of listing standards will further improve financing accessibility for R&D-focused companies. Market-based issuance pricing and strict delisting systems operate in parallel, stimulating market vitality through competition.

Ma Xuepei, general manager of Tianyi Ma and NPC deputy, mentioned that GEM’s listing standards are diverse and inclusive, suitable for companies at different growth stages. Tools such as refinancing, M&A, and equity incentives are abundant; trading mechanisms are market-oriented, and regulatory approaches are differentiated, providing precise services for innovative growth.

Wu Fengli, chairman of Tuosda and NPC deputy, believes that GEM’s inclusive standards meet the financing needs of different innovative companies. Small, quick placements and flexible M&A mechanisms support technological upgrades and industrial integration, attracting high-tech companies to accelerate domestic substitution.

Yuan Yuyu pointed out that GEM considers enterprise market value, technology, and potential, rather than profit alone. This inclusiveness allows R&D-oriented companies to smoothly access capital markets, promoting industrial upgrading and resource optimization.

Jiang Lingfeng, citing ZF Bio, explained that GEM’s diversified listing standards and market-oriented mechanisms enable companies to optimize layout through acquisitions and sci-tech bonds, with capital precisely flowing into R&D.

Consensus 3: Promoting brand and talent upgrades

Listing on GEM not only provides capital support but also drives improvements in corporate governance, brand influence, and talent cohesion. This is a core benefit shared by the representatives. They mentioned that GEM’s standardized requirements push companies to upgrade governance, enhance brand value through platform credibility, and use market-based tools to attract core talents, fostering coordinated development of governance, branding, and talent, thus laying a solid foundation for long-term stable operation.

Ding Lieming said that listing has helped Betta Pharmaceuticals establish a modern governance system, transitioning from entrepreneurial management to institutionalized operation, while boosting international brand influence and attracting top global talent through equity incentives.

Kong Lingyong noted that after DfNano’s listing, its brand credibility significantly improved, upgrading from a component supplier to a full supply chain solution provider in collaboration with leading battery companies. Multi-stage equity incentives have aligned employee and shareholder interests, activating internal innovation potential, while ESG governance and green manufacturing are also advancing.

Zhou Qunfei introduced that Lens Technology has improved corporate governance, standardized information disclosure, and made decision-making more scientific and efficient. The GEM platform provides a credit endorsement, helping companies evolve from component suppliers to full industry chain solution providers, with continuous enhancement of talent attraction.

Shao Zengming said that after listing on GEM, Liliang Diamonds transitioned from a private enterprise to a public company, upgraded governance, and enhanced brand influence, laying a foundation for China’s diamond manufacturing to go global.