Stringent disclosure requirements for listing candidates on the Growth Enterprise Market (GEM) will protect investors, according to stock exchange chief Alec Tsui Yiu-wa.
For the soon-to-be launched GEM, the stock exchange would adopt a more hands-off approach on determining the quality of candidates and instead would rely on tougher disclosure rules, Mr Tsui said.
Speaking at the Hi-tech Venture Capital Forum, Mr Tsui said this would empower investors to make well-informed decisions.
He said regulators would enforce disclosure where necessary and take tough disciplinary action against offenders.
'We are moving more towards the United States' disclosure-based regulatory philosophy,' Mr Tsui said.
'Timely and detailed disclosure enables investors to make their own decisions.' Under GEM listing rules, applicants will be required to disclose in detail their business objectives for two years after listing.
