On 15 December 2023, the Stock Exchange of Hong Kong Limited (the “Exchange”) published the conclusions of its consultation on proposed changes to the GEM Listing Rules (“Conclusions”).    

To enhance GEM’s attractiveness whilst maintaining high standards of investor protection, the Exchange published a consultation paper (“Consultation Paper”) on 26 September 2023 to seek market feedback on GEM listing reform proposals (please refer to our Capital Markets Update Issue 2023-07 for a summary). 

The consultation period ended on 6 November 2023. After considering the market feedback, the Exchange has decided to implement the proposals set out in the Consultation Paper with minor modifications and clarifications. The key proposals adopted are summarised below.

  1. New alternative eligibility test – “Market capitalisation/ Revenue/ R&D test”;
  2. Alignment of requirements for GEM issuer with those for Main Board issuers; and
  3. New streamlined approach and fee exemption for transfers to Main Board

The amendments to Listing Rules in relation to GEM reforms will come into effect on 1 January 2024.