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Slow year, missed targets for 2 yr old Gem

Updated at 7.33pm: The Growth Enterprise Market (Gem) has helped companies raise HK$2.78 billion in initial public offerings in the first ten months of this year, only a fraction of the HK$14.51 billion in the same period last year.

As the market reaches its second anniversary tomorrow, the dismal fund-raising performance was blamed on the bursting of the technology investment bubble last year and the global economic slowdown this year.

Hong Kong Stock Exchanges and Clearing is set to miss its original target to have 100 companies listed by the end of the year, by about a year.

Investors shied away from the board, originally intended for companies with growth potential but little track record, as Gem companies were perceived to be of lower quality compared to their mainboard-listed peers. Some 95 companies are listed on GEM - 41 companies of which debuted this year.

Deputy chief operating officer Lawrence Fok Kwong-man defended Gem's performance by pointing out that it was second only to Taiwan in the region's second boards in terms of funds raised in 2001's first half.

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