China to Launch Its Nasdaq-Style GEM on Oct. 23

BEIJING, Oct. 19 -- The Chinese securities regulator said here Saturday that trading on the Nasdaq-style Growth Enterprises Market (GEM) will be launched on October 23.

    Shang Fulin, chairman of the Chinese Securities Regulatory Commission, released the above information at a forum on GEM Saturday morning.

    That means, the first batch of 28 companies will get listed and be open for trading next Friday, a timing earlier than expected.

    Overly high IPO prices expose investors to higher risks because near future value of the stocks are unpredictable based on little historical data of the companies, analysts say.

    Though beneficial to both economic development and employment creation, the GEM companies are more likely exposed to market manipulation, Shang warned, adding these companies are still less capable in face of market risks as they are relatively small compared with the main board companies.

    (Source: Xinhua)