SMEs' Crucial Cruxes: A Perspective from the IPO Failures of GEM

GEM provides an important financing channel and a selection mechanism for the growth enterprises. Only those that meet some certain standards such as continuous profitability and growth capability can go public on GEM. In this paper, we sum up the IPO failures of GEM to analyze why they didn't successfully go public on GEM. And by this means, we try to find out the existing crucial cruxes of China's SMEs . We come to the conclusion that being short of continuous profitability and growth capability is the main crux of China's SMEs. Based on this conclusion, we give some suggestions at the end of this paper.