JASDAQ insider's handy advice to China's GEM investors

The JASDAQ is another Growth Enterprise Market Board based in Tokyo. Japan's Nasdaq-style board specializes in venture business and SMEs. A JASDAQ securities analyst offers some handy advice to China's GEM Board investors.

An investment expert from Japan's Toyo Securities says it is difficult to value stocks listed on the GEM Board. He points out while there is great potential for growth, investors should be wary of risks.

Investment Expert of Toyo Securities said "Investors should observe the enterprise for a long time. They should not take a hasty approach to make money. The fund they put into the GEM board should not be short-term fund. Investors should deploy their capital well. Part of it can make ordinary investment, and part of it be invested in GEM Board. Then they will be flexible about their investment."

He says further efforts are required to collect information on companies listed on the GEM Board. This is because small-to-medium enterprises change faster than main board companies.

Investment Expert of Toyo Securities said "Investors should pay close attention to enterprises. This includes what they are doing, their performance, profitability, market environment, and so on. If not, they could miss big changes of these companies and suffer losses."

GEM Board investors have been urged to adopt a cautious approach to safeguard against risks.