The Government has signed letters of exchange with mainland authorities on regulatory co-operation, paving the way for the first mainland companies to list on the forthcoming Growth Enterprise Market (GEM).
The signing took place in Beijing.
Despite the move, GEM listing committee chairman Lo Ka-shui said yesterday that the first listing was unlikely to take place this year under Beijing's guidelines governing mainland companies issuing shares on the GEM.
Mainland-based companies were expected eventually to become GEM's major components, he said.
In June, the China Securities Regulatory Commission (CSRC), the mainland's securities watchdog, and the SAR's Securities and Futures Commission signed a memorandum of regulatory co-operation (MORC).
The MORC provides the framework for regulatory co-operation between Hong Kong and the mainland.