Gem Helps Cultural Enterprise Financing

For a long time, "financing difficulty" has always been a major bottleneck for the development of domestic cultural enterprises.

Generally speaking, the channels for SMEs to obtain funds for development mainly come from two aspects: internal financing and external financing.

Endogenous financing is a process that enterprises continuously convert their surplus into investment, which is flexible, efficient and centralized for the capital formation of enterprises. It is an important part of the survival and development of small and medium-sized enterprises.

External financing is divided into direct and indirect financing, which is the process of absorbing the surplus of other economic entities and pforming them into their own investments.

Due to the asymmetric information between SMEs and commercial banks, banks are unwilling to provide loans to SMEs.

In addition, China's commercial banks have always focused on large enterprises as the key payment objects. Due to their own safety considerations, the restrictions on the amount of loans to SMEs are stricter.

Moreover, because of the characteristics of the cultural industry, it is even more difficult for bank credit to invest in the cultural industry.

Therefore, direct financing for the capital market is an effective way to expand the low cost of the cultural industry.

The growth enterprise market, also known as the second board market, is a concept corresponding to the main board market. It refers to the new capital market specially designed for newly emerging companies and small and medium-sized enterprises outside the main board, which has the characteristics of low threshold, high risk and strict supervision.

In October 30, 2009, since the listing of gem stock on the Shenzhen stock exchange, China's growth enterprise market has seen vigorous growth momentum.

The listing requirement of gem is a company with the characteristics of "two high and six new".

"Two high" refers to the high growth and high technology content; "six new" refers to the new economy (310358, fund bar), new technology, new agriculture, new materials, new energy and new services.

In view of this, the development of the growth enterprise market can also provide more convenient financing channels for small and medium-sized cultural enterprises, promote the development of cultural industries, and promote the adjustment of China's industrial structure and the further pformation of China's economy.

At present, there are three sets of standards for the issuance of gem in China. The first set of standards requires enterprises to make profits for two consecutive years and accumulate not less than 10 million yuan; second sets of standards require profits in the latest year and net profits should not be less than 3 million yuan; third sets of standards only require profits but no amount requirements.