Articles: Growth Enterprise Market

New GEM Exemptions
Over a year after consultation ended, new rules have been announced for HK's second board. The track record requirement is reinstated to two years, but with a glaring exemption for candidates that can meet certain "substantial size" and "significant public following" criteria. So small scams are unacceptable, but big ones are OK, and if you can con 300 people, you don't need a track record. As we explain, this is not going to salvage GEM's tattered reputation, and the process again underlines the need to move listing regulation to the SFC. (30-Jul-2001)

Your views on GEM's Rules
In a successful start to Listing Rule consultations over the internet, readers of Webb-site.com have made their views known to GEM. By the deadline of 30-Jun-00, 55 submissions had been made, with a further 6 received in the week after the deadline. The total is 3 times the number of submissions that might typically be received by the Exchange. Here's what you had to say... (9-Jul-2000)

GEM wants YOUR views!
In another internet first, Webb-site.com allows you to submit your views on the GEM listing rules directly to the SEHK. Read our views, then use our one-click form to tell the Exchange whether you agree. Your vote for better investor protection can make a difference, but hurry - the deadline for submissions on the consultation paper is Friday 30-Jun-00. (26-Jun-2000)

No Exceptions?
Two months ago the SEHK and SFC introduced standardised waivers of the GEM listing rules. Despite its denials of preferential treatment, the Exchange has still not levelled the playing field by tightening the waivers on share options and lock-ups granted to Tom.com and Hongkong.com. Indeed, the wording on Tom.com's option limit has been relaxed further. Now the Exchange proposes a similar amendment to the option limits on the main board. Dilution city here we come. (14-May-2000)

Orgs
- China.com Inc.
- TOM GROUP LIMITED

Tags
- Listing rules

GEM Waivers Reviewed
Following our recent criticisms of the confetti of waivers granted by GEM, the SFC and SEHK have hammered out a compromise which relaxes some rules but contains some encouraging news and a minor victory for minority shareholder protection. However, the new proposals are being effected before public consultation, and by the time this is over too many horses will have bolted. The whole affair underlines the need to transfer the listing division to the SFC and let the Exchange focus on exchanging. (12-Mar-2000)

Orgs

Options-R-Us
Reacting defensively to our previous article and others that followed, the SEHK issued a statement claiming that no preferential waivers have been granted to anyone. Their announcement contained a number of misleading statements which cannot go unanswered. We also look at how a good governance framework would improve investor returns and lower the cost of capital to Hong Kong issuers. (7-Mar-2000)

Orgs
- China.com Inc.
- TOM GROUP LIMITED

Waivers Galore for Tom.com
The SEHK, demonstrating the inherent conflict between its regulatory role and its future role as a profit-making company, has begun waiving listing rules in a wholesale fashion to attract new listings. We look at the 3 major waivers granted to Tom.com on placings, lock-ups and a five-fold increase in share options, and at the wider issue of regulatory decay through competition. (21-Feb-2000)

Orgs
- TOM GROUP LIMITED

GEM (the SEHK's 2nd board)
An outline and commentary on the proposals for a second board in Hong Kong. (3-Oct-1999)

EXCLUSIVE- GEM Rules Revealed
Webb-site.com brings you the scoop on the GEM listing rules. In an ironic technological gaff, we discovered that the new rules have been left open to view on the new GEM web site at the Stock Exchange, ahead of tomorrow's announcement. (21-Jul-1999)

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