Library Major Changes from Proposals contained in Consultation Paper dated May 1998

	GEM Listing Rules	Consultation Paper	Reason
Minimum transaction size	No restriction	Min. HK$250,000	Liquidity concern
Trading System	Automatic order matching, same as Main Board	Bulletin Board	In tune with the removal of the min. transaction size
Jurisdictions of incorporation	HK, PRC, Bermuda & Cayman Islands	All jurisdictions	Too risky to accept all jurisdictions
Winding up provisions	No specific provision	Compulsory winding up under certain conditions	Practical difficulties
Exchange's vetting role at the time of listing	Pre-vetting to check compliance with Companies Ordinance and GEM Listing Rules	Pre-vetting to check compliance with Companies Ordinance and post-vetting to check compliance with GEM Listing Rules	Follow existing Main Board practice
Exchange's vetting role on companies' announcements and circulars	Pre-vetting to check compliance with GEM Listing Rules	Post-vetting to check compliance with GEM Listing Rules	Follow existing Main Board practice