Market capitalisation to beat all forecasts with $150b mid-year

Total market capitalisation of the Growth Enterprise Market (GEM) should reach $150 billion by the middle of the year, far exceeding expectations for the second board, according to a GEM official.

The Stock Exchange of Hong Kong had predicted that GEM's total market capitalisation would be $100 billion 12 months after the board's November launch.

But that target will be within reach this week with the added weight of Wah Sang Gas Holdings and Sunevision, a subsidiary of Sun Hung Kai Properties.

Wah Sang Gas Holdings, which began trading yesterday, added $1.19 billion to the GEM's market capitalisation.

Sunevision, which is to start trading today, is expected to add at least $20.8 billion and raise market capitalisation for the GEM's 16 companies to at least $98 billion.

Another 30 companies were seeking listings, GEM senior manager Connie Chung To-hing said.

'If their applications proceed smoothly, these companies would be listed on the GEM board in the second quarter,' said Ms Chung.