Repositioning of GEM and Changes to GEM and Main Board Listing Rules

February 14, 2018

On 15 December 2017, Hong Kong Exchanges and Clearing Limited (“HKEX”) published its “Consultation Conclusions on The Review of the Growth Enterprise Market (GEM) and Changes to the GEM and Main Board Listing Rules” and relevant amendments to the GEM Listing Rules and Main Board Listing Rules (the “Rule Amendments”).

HKEX introduced the Rule Amendments to reposition GEM as a stand-alone board for small and mid-sized companies instead of a stepping stone to the Main Board and to ensure that there is a clear distinction between the Main Board and GEM. The names “Growth Enterprise Market” and「創業板」 (both English and Chinese names) will be changed to “GEM” to reflect the new role of GEM as a market for small and mid-sized companies.

The Rule Amendments will become effective on 15 February 2018 (“Amendment Effective Date”). Certain eligible GEM issuers applying for a transfer of listing from GEM to the Main Board (“GEM Transfer”) will be entitled to transitional arrangements for a grace period of three years from the Amendment Effective Date.

This TechNews highlights the key aspects of the Rule Amendments and summarizes the implementation and transitional arrangements.

 

Topics: Regulatory Updates & News

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