What is the difference between GEM and A-share?

GEM and A-share are two important stock markets in China's stock market, and there are many significant differences between them. This article will analyze the difference between GEM and A-share from several angles.

I. Market Attributes

GEM is one of the youngest sectors in China's stock market, established in 2009. It is a stock market that specializes in providing financing channels for private companies and innovative enterprises. A-shares, on the other hand, is the main market of China's stock market and one of the main markets for domestic companies to issue shares publicly.

Second, the investment threshold

A-share contains the GEM, the main market investment threshold is relatively low, generally as long as the opening of a stock account can be. The GEM investment threshold is relatively high, requiring two years of trading experience, C4 and above the risk tolerance and 100,000 capital threshold.

Three, industry attributes

GEM is more focused on high-tech areas and emerging industries, the business of these companies have greater uncertainty and innovation. In contrast, companies in the A-share market cover a wide range of industries, including manufacturing, finance, real estate and energy and other traditional industries.

Four, Risks and Opportunities

Companies in the GEM market are mainly high-growth start-ups, whose stock prices are more volatile and relatively risky due to their constantly changing business performance. However, for those professionals who understand the sector, the GEM market offers many opportunities. a-shares, on the other hand, is the main market for large-cap, mature companies, which are relatively less risky but also offer fewer opportunities.

In summary, there are many significant differences between GEM and A-shares, which make them attractive and risky for investors in different ways. Investors should choose the right market for their investment based on their experience, areas of interest and risk tolerance.