Mixed feelings for GEM

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The Growth Enterprise Market is widely anticipated as a new fund-raising channel for cash-hungry start-up companies. But company managers and investors differ.

Investors are rushing to the nearest securities brokers to open new accounts on the GEM. Some late comers have to fill their tables outside because there is no room left in the lobby. Although most investors are seeking a feast on China's NASDAQ, they are well aware that there is no such thing as a free lunch.

This investor says it's too risky, and he refuses to try his luck in the fledgling market. Others who would give it a shot are also very cool-minded.

"I won't go into the market before more details are revealed."

In sharp contrast, managers of start-up companies are craving for IPOs on the GEM.

Zhan Donghui, General Manager of Nanjing Yuanli Technology, said, "For small companies like us, GEM is like a rocket propeller for our growth."

The NASDAQ-style stock market is known for high risks. In 2001, Hong Kong's GEM board plummeted from its initial 1,200 points to a mere 100 points. This is an alarming lesson for Chinese investors and start-up companies...that it is better to be well prepared before making a move.