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Note to subscribers for the amendments of
the rules governing the listing of securities on the Growth Enterprise Market
("GEM Listing Rules")
Update No. 11
12 December 2001
Dear Sirs,
Amendment to the GEM Listing Rules in relation to the involvement of
accounting firms as co-sponsors and reporting accountants in the same listing applications
We enclose reprinted pages of the GEM Listing Rules incorporating amendments
to Chapter 6 of the GEM Listing Rules, together with filing instructions.
The Exchange may in certain circumstances permit the corporate finance and
audit operations of an accounting firm to be involved as a co-sponsor (but not as a sole sponsor) and the reporting accountant
respectively in the same listing application. The responsibilities of sponsors and co-sponsors in relation to new listing applications,
as set out in the GEM Listing Rules, are not affected by the granting of such permission. The Exchange considers that the roles of the
corporate finance and audit operations of an accounting firm in a new listing application should be clearly segregated. Such segregation
should comprise "Chinese walls" between the respective functions and should be enforced through proper internal risk management procedures
within an accounting firm.
Any permission granted by the Exchange is subject to various conditions set out in the GEM Listing Rules,
as amended, and any other conditions, which the Exchange may impose as appropriate.
Such permission is to be granted by the Exchange on a case-by-case basis.
The above rule amendment will apply with immediate effect.
Yours faithfully,
For and on behalf of
The Stock Exchange of Hong Kong Limited
Karen Lee
Head of Listing, Regulation and Risk Management
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