About GEM
The Market for Growth Enterprises |
As a gateway to Mainland China and with close trading and
business links to other Asian economies, Hong Kong is strategically placed in a high
growth region. Over the years, Hong Kong has developed into an internationally recognised
financial centre and has provided many Asian and multinational companies with fund-raising
opportunities. Growth enterprises particularly those emerging ones, i.e. enterprises that
have good business ideas and growth potential, however, may not always be able to take
advantage of these opportunities. A great number of them do not fulfil the
profitability/track record requirements of the existing market of the Stock Exchange of
Hong Kong ( i.e. main board of the Exchange ) and are therefore unable to obtain a
listing. The Growth Enterprise Market (GEM) is designed to bridge this gap. |
GEM offers growth enterprises an
avenue to raise capital. The Growth Enterprise Market does not require growth
companies to have achieved a record of profitability as a condition of listing. This
removal of entry barrier enables growth enterprises to capitalise on the growth
opportunities of the region by raising expansion capital under a well-established market
and regulatory infrastructure. Besides the listing of local and regional enterprises,
international growth enterprises can enhance their business presence and raise their
product profile in China and Asia by listing on GEM. |
GEM offers investors an
alternative of investing in "high growth, high risk" businesses. The
future performance of growth companies particularly those without a profit track record is
susceptible to great uncertainty. Because of the higher risks involved, GEM is
designed for professional and informed investors. It works on the basis of caveat
emptor or buyers beware. |
GEM provides a fund raising venue
and a strong identity to foster the development of technology industries in Hong Kong and
the region. GEM is opened to growth companies big
and small engaged in all industries. Technology companies in particular should find it
attractive to align themselves with the strong growth theme of the market. In providing a
fund raising venue and a strong identity to technology companies, GEM complements
and supports the HKSAR Government's initiative to promote the development of technology
industries in Hong Kong. |
GEM promotes the development of
venture capital investments. GEM provides both an
exit ground and a venue for further fund raising for investments made by venture
capitalists. This facilitates more and earlier investments to be made by the venture
capitalists in support of the growth of the industry. |
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