Hong Kong GEM Listing Reforms

December 2023

HKEx has recently issued consultation conclusions on GEM Listing Reforms. All proposals are adopted with minor amendments and clarifications. The rule amendments for the reforms will take effect on 1 January 2024. Key proposals adopted are:

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