Market Turnover


Exchange Publishes Consultation Conclusions on GEM Listing Reforms

15 Dec 2023
  • All GEM reform proposals (GEM Reforms) proposed by the Exchange received majority support and will be adopted with minor modifications
  • GEM Reforms to take effect on 1 January 2024


The Stock Exchange of Hong Kong Limited (the Exchange), a wholly owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX), today (Friday) published conclusions (Consultation Conclusions) to its Consultation Paper on GEM Reforms (Consultation Paper).

The Exchange received 58 non-duplicate responses to the Consultation Paper from a broad range of respondents. All the Exchange’s proposals received majority support. The Exchange will adopt those proposals with minor modifications and clarifications as set out in the Consultation Conclusions.

HKEX Head of Listing, Katherine Ng, said: “We are very pleased to have had strong support for our GEM proposals, and HKEX is excited about implementing reforms next year. We believe these will greatly enhance GEM’s attractiveness to SMEs seeking a listing. In addition, our adjustments to ongoing listing requirements will help to reduce compliance costs for current GEM issuers, whilst at the same time upholding market quality and investor protection.”

The key proposals adopted include:

  • Introducing a new streamlined transfer mechanism to enable eligible GEM issuers1 to transfer to the Main Board without the need to appoint a sponsor to carry out due diligence or produce a “prospectus-standard” listing document;
  • Introducing a new alternative “market capitalisation/ revenue/ R&D test”2 for an initial listing on GEM that targets high growth enterprises heavily engaged in research and development (R&D) activities;
  • Reducing the post-IPO lock-up period imposed on GEM issuers’ controlling shareholders to 12 months; and
  • Removing mandatory quarterly reporting requirements and aligning other continuing obligations of GEM with those of the Main Board3.

The revised GEM Listing Rules and Main Board Listing Rules to implement the GEM Reforms will come into effect on Monday, 1 January 2024.

The Consultation Conclusions and copies of respondents’ submissions are available on the HKEX website.



  1. The qualifications of a streamlined transfer required for an eligible GEM issuer are set out in Section III in Chapter 2 of the Consultation Conclusions.
  2. The requirements that a GEM listing applicant must meet under the new test are set out in Section I(A) in Chapter 2 of the Consultation Conclusions.
  3. The proposal to align continuing obligations of GEM with those of the Main Board include:
    • Removing the requirement to appoint a compliance officer of a GEM issuer;
    • Shortening the engagement period of the compliance adviser of a GEM issuer to a period that is equivalent to the relevant Main Board requirement; and
    • Aligning GEM’s periodic reporting timeframes for annual reports, interim reports, and preliminary announcement of results for the first six months of each financial year with the relevant timeframes under the Main Board.

    For details, please see Section II in Chapter 2 of the Consultation Conclusions.



About HKEX

Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.

As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.

HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.





Updated 20 Dec 2023