Hong Kong Exchanges and Clearing explores merging GEM with main board, source says
Bourse operator Hong Kong Exchanges and Clearing (HKEX) is exploring merging the GEM board with its main board by creating a new chapter of its listing rules, according to a source familiar with the discussions. The proposal to create Chapter 18D, which would be a core part of the second phase of the review of the listing regime, would be subject to a public consultation by the end of the year,…
Hong Kong Exchanges and Clearing (HKEX) is discussing the possibility of merging the GEM board with its main board, according to a source familiar with the matter. The proposal would involve creating a new Chapter 18D as part of the second phase of HKEX's listing regime review. This new chapter would allow smaller, newly established companies to list, even if they don't meet profit requirements.
The existing 300 firms on the GEM may be allowed to join the main board under this new chapter. HKEX is seeking public consultation on the proposal by the end of the year. The existing GEM, which has 306 firms with a combined market capitalization of HK$78 billion, has seen minimal turnover and few new listings since its reform in 2018.
Critics argue that Hong Kong's economic growth depends on the success of smaller companies, and a reform that makes the GEM more attractive would benefit the overall market.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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