SFC Publishes Statement on Recent GEM Listing Applications and the Requirement for an Open Market

Julia CharltonPartner, Charltons

SFC Publishes Statement on Recent GEM Listing Applications and the Requirement for an Open Market

Introduction

On 13 March 2017, the Securities and Futures Commission (the SFC) issued a “Statement on recent GEM listing applicants” (the Statement). This follows the regulators’ elaboration on the requirements for IPOs on the Growth Enterprise Market (GEM) which are conducted by way of placing only aimed at reducing the price volatility of GEM stocks. The regulators’ guidance was set out in a Joint Statement by the SFC and the Stock Exchange of Hong Kong Limited (Exchange) (the Joint Statement) and the SFC’s Guideline to Sponsors, Underwriters and Placing Agents Involved in the Listing and Placing of GEM Stocks (the Guideline) both published in January 2017. For further information on the Joint Statement and Guideline, please see our February newsletter. The SFC has published the Statement as an update and to provide further guidance on its regulatory approach. Read more…


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