The Growth Enterprise Market (GEM) which provides an alternative channel for emerging companies to raise funds for business development in the Hong Kong Special Administrative Region has been launched.

The aim of the GEM is to become a successful stock market in its own right known for its quality, level of transparency, level playing field, orderly transactions as well as investor protection.

It targets growth enterprises from all industries and of all sizes, with the objective of allowing these enterprises easier access to capital.

The GEM will benefit not only the emerging enterprises in Hong Kong, but also those in the Mainland and many other countries.

So far more than 30 companies have been admitted as sponsors of the Gem, and nine formal listing applications have been received.

The creation of a second market in the territory was first mooted in 1987, and through the concerted effort of the Hong Kong Stock Exchange and the Securities and Futures Commission, approval for the establishment of the GEM was given.

The Financial Secretary, Mr. Donald Tsang, who officially launched the opening of the new trading platform on November 15 said that a successful GEM will help attract venture capital to Hong Kong. Mr. Tsang is also pleased to see keen interest from Mainland companies to list on the second market.

"With the establishment of GEM, Hong Kong plays an even more important role as the major fund-raising centre outside Mainland for Mainland enterprises," Mr. Tsang said.

For further information please contact Chief Information Officer, Frank Chuan.

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