Hong Kong Exchanges and Clearing said it will explore additional measures to strengthen its listing framework, following a China Daily inquiry on whether it is considering merging the GEM — formerly Growth Enterprise Market — board with the Main Board.

Local media on Thursday reported that HKEX is planning to introduce a new Chapter 18D in the Listing Rules. The chapter would allow small, newly established firms that could not meet profit requirements to list, while existing GEM companies could be transitioned into the Main Board under the new chapter.

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The proposal is expected to be the core part of the second phase of the bourse’s listing regime review, and would be subject to a public consultation later this year, according to the report.

“HKEX is pleased to have implemented the first phase of the Listing Framework Competitiveness Review, which drew strong market support and enhanced Hong Kong’s attractiveness as a premier fundraising destination,” a HKEX spokesperson told China Daily.

“Building on this progress, we will continue to explore additional measures to strengthen the attractiveness of our listing framework to ensure it remains fit for purpose, and will share updates as appropriate in due course,” the spokesperson added.

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The GEM board serves as a secondary tier for small- and medium-sized enterprises or high-growth companies that may not yet meet the Main Board’s profit and size thresholds. As of end-July, it hosted 306 firms, with a combined market capitalization of around HK$65.46 billion ($8.34 billion).

To spur new growth, HKEX rolled out Chapters 18A, 18B and 18C between 2018 and 2023, opening the doors for companies that do not fit the criteria of the Main Board to list, such as pre-revenue biotech companies, special purpose acquisition companies and specialist technology companies.

Contact the writer at gabylin@chinadailyhk.com