HKEx Consults on Proposed New Board for New Economy Companies

HKEx Consults on Proposed New Board for New Economy Companies

On 16 June 2017, the Hong Kong Stock Exchange (the Exchange) published its New Board Concept Paper setting out proposals for the establishment of a New Board, separate from the Main Board and the GEM, to open Hong Kong’s capital markets to a broader range of issuers. At the same time, the Exchange issued a separate but related Consultation Paper on the Review of the Growth Enterprise Market (GEM) and Changes to the GEM and Main Board Listing Rules (the GEM Consultation Paper) which proposes to reposition the Main Board as a premier board for larger companies while GEM will continue to serve established SMEs. Both the Main Board and GEM will be subject to higher entry criteria and additional changes to the GEM Rules are proposed to address concerns relating to the quality and performance of GEM listing applicants and listed companies. Charltons has published a separate newsletter on the proposals set out in the GEM Consultation Paper. The Exchange has also published a set of Frequently Asked Questions on the proposals. Read more…