Venture capitalists are positive about the launch of the Growth Enterprise Market (GEM) and believe it can assist in promoting higher standards of corporate governance.
Hong Kong Venture Capital Association (HKVCA) president Roger Marshall said the GEM board was designed to operate on a disclosure basis.
As a result, it would have tougher requirements than the main board on company disclosure and sponsors' responsibilities.
This would give GEM companies the opportunity to boost investors' confidence, Mr Marshall said.
HKVCA chairman Adrian Lam said venture capitalists would actively help to enhance GEM companies' planning and transparency.
'This can help to reduce our risk too . . . we are helping them to help us to [ensure better returns],' Mr Lam said.
Mr Marshall believed a higher standard of transparency in the GEM would create new challenges for the main board and help to upgrade the overall standard of the Hong Kong stock market.
