The man who helped pilot a regime of quarterly reporting into place for second-board companies in Hong Kong now regrets doing so and does not want to see the system applied on the main board of the stock market. 'I regret requiring companies listed on the GEM [Growth Enterprise Market] to make quarterly reports,' said Lo Ka-shui, who was the chairman of the GEM listing committee that decided on the disclosure regime for the market, launched in 1999. From the outset, GEM firms have had to report results every three months, against the six months for main-board firms. Mr Lo said at that time he believed GEM companies needed to report more frequently as they were newly set up and had higher risks than main-board companies. Listing requirements were less onerous, and firms with no profit record could obtain a GEM listing, while the main board only allowed established companies with a combined HK$50 million profit in three years preceding the listing to apply to list. He said his view on quarterly reporting changed after he sat on the board of two GEM companies. 'Quarterly reporting is very time-consuming and expensive. It also led management to chase short-term profit when they should have had an eye on long-term development.' Mr Lo, the chairman of listed property developer Great Eagle Holdings and of the Chamber of Hong Kong Listed Companies, said the chamber would oppose Hong Kong Exchanges and Clearing's proposal to introduce quarterly reporting. HKEx plans to issue a consultation paper at the end of this year or early next year.