Why do some main board stocks become GEM stocks?

php editor Xinyi will explain to you why some main board stocks will become GEM. Main board stocks turning into GEM may be caused by the company's business adjustment, decline in market value, decline in profitability and other reasons. The GEM is relatively flexible and more suitable for growing companies, so some companies will actively choose to transfer to the GEM. During the transfer process, companies need to meet certain conditions, such as performance, capital structure, etc., to ensure the steady development of the GEM market.

Main board stocks will not automatically become GEM stocks. The Main Board and GEM are two different sectors of the Chinese stock market, with different listing standards and trading rules. The main board market is mainly for mature companies, and the listing standards are relatively high, including financial indicators, company size, operating years and other requirements. The GEM is mainly for innovative and growth-oriented enterprises, and its listing standards are relatively low, but it has higher requirements for the company's innovation capabilities and technological content. If a company was originally listed on the main board, but due to certain reasons, such as a decline in company performance, violation of listing rules, etc., it may be suspended from listing or forced to delist. In this case, the company's shares will no longer trade on the main market. On the other hand, if a company meets the GEM listing standards and decides to list on the GEM, it needs to apply and be reviewed in accordance with the GEM listing rules and be listed and traded on the GEM after passing the review. In this case, the company's shares will be transferred from the main market to the GEM market for trading. In short, Main Board stocks will not automatically become GEM stocks. Instead, they need to go through a series of application and review procedures and meet the GEM listing standards before they can be listed and traded on GEM.

The above is the detailed content of Why do some main board stocks become GEM stocks?. For more information, please follow other related articles on the PHP Chinese website!