HKEX plans GEM listing reforms to help tech start-ups raise funds, but rivals Shenzhen and Shanghai pose challenges
- HKEX will consult the market this year to convert the GEM into a fundraising platform for tech start-ups
- The listing reforms proposal for GEM is the latest in a string of changes made by the HKEX to attract technology companies to list in Hong Kong
Bourse operator Hong Kong Exchanges and Clearing (HKEX), which runs the third-largest stock market in Asia, has embarked on listing reforms for its second board to enable fundraising by small and medium-sized enterprises (SMEs) and technology start-ups, according to a minister.
The HKEX is now looking at overseas and mainland examples of potential ways to reform GEM for SMEs and technology start-ups, and is collecting views on these issues, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu told lawmakers at a meeting on Monday.
A consultation paper is planned for later this year to seek views on listing reforms for GEM, its second board, which includes increased focus on converting the platform to a fundraising avenue for tech firms, Hui said.
The GEM’s listing reform is the latest in a series of changes made by the HKEX to attract technology companies to list in Hong Kong and consolidate its position as an international financial centre.
“We hope the reforms will better serve the fundraising needs of all companies, including innovative start-ups, which are in earlier development stages and contribute to the development of innovation and technology,” Hui said.