HKEX mulls merging GEM board into main board via new listing chapter
Hong Kong Exchanges and Clearing is considering merging its GEM board with the main board by introducing a new listing rule chapter, Chapter 18D, according to a source. The proposal, part of the second phase of the listing regime review, would undergo public consultation by year-end. The GEM board has struggled with low turnover and few new listings, prompting the reform option.
The proposed Chapter 18D would absorb more than 300 GEM-listed firms into the main board, according to the source. This forms part of the second phase of HKEX's listing regime review, with a public consultation slated before year-end. The GEM board has faced persistently weak turnover and a dearth of new listings, prompting this structural rethink.
Since 2018, HKEX has already created tailored listing chapters—18A for pre-revenue biotech firms, 18B for SPACs, and 18C for large tech companies without revenue. A new chapter for smaller companies would follow that pattern, offering a dedicated pathway rather than a separate board.
This merger could reshape access to Hong Kong's capital markets for smaller firms, potentially lowering listing barriers while increasing their visibility to investors. It may also revive the main board's liquidity and attract more diverse issuers, but could concentrate risk if weaker GEM companies struggle under stricter main-board scrutiny. Investors might see new opportunities, yet the outcome depends on consultation details and regulatory safeguards.