Abstract: The paper focuses on the 280 listed companies on GEM from 2011 to 2013, and then calculates financial conditions indices based on catastrophe theory model. The results show that:(1) the average values of the financial conditions indices are respectively 0.701, 0.698, and 0.740. There are 14.28%, 14.28%, and 10.71% of the samples failed; 17.86%, 10.71%, and 14.29% between 0.6~0.7; 50%, 57.14%, and 46.43% between 0.7~0.8; 17.76%, 17.86%, and 28.57% between 0.8~0.9; (2) as far as the industry is concerned, the manufacturing industry accounts for the larger; (3) from the perspective of longitudinal analysis, the values of different factors and financial conditions indices are the highest in 2013, the middle position in 2011, and the lowest in 2012; (4) from the perspective of horizontal analysis, the values of different factors and financial conditions indices suggest that the GEM listed companies have strong growing ability and profitability, but with weak debt-paying ability and ideal operation ability. Finally, according to the empirical analysis results, the policy recommendations are put forward.