On 26 September 2023, The Stock Exchange of Hong Kong Limited (“HKEX”) published a consultation paper on GEM listing reforms. The proposals have the objective of encouraging and facilitating listings of small and/or medium-sized enterprises (“SMEs”) on GEM while upholding high standards of investor protection. The consultation period will close on 6 November 2023. Subject to market feedback, HKEX expects that the rule amendments will come into effect in early 2024.

Key features of the GEM listing reforms proposed by the HKEX are outlined as below and more details are discussed here.

• A new alternative eligibility test – “Market capitalisation / Revenue / R&D test”;
• To remove the mandatory quarterly reporting requirement; and
• To streamline the transfer mechanism

For further information and to discuss what this development might mean to you, please get in touch with our lawyers and business executives.