Note to subscribers for the amendments to the rules governing the listing of securities on the Growth Enterprise Market (the "GEM Listing Rules")

Update No. 26

June 2008

Dear Sirs,

Amendments to the Listing Rules relating to the further development of the Growth Enterprise Market

We enclose reprinted pages of the GEM Listing Rules.  The reprinted pages incorporate amendments to provide for the further development of the Growth Enterprise Market (GEM) as a second board and as a stepping stone towards listing on the Main Board.

Amendments have been made to reflect the new role of the market but GEM has largely retained its existing structure.

The key Rule amendments are set out below:   

• under new quantitative admission requirements, applicants need to have achieved positive cash flow of not less than $20 million in aggregate for the two preceding financial years;
• the power to approve the admission of new issuers to GEM has been delegated from the GEM Listing Committee to the Listing Division. The GEM Listing Committee has retained its monitoring, review and policy responsibilities;   
• continuing obligations of GEM listed issuers have been brought closer to the requirements applicable to the Main Board market; and
• the process for transferring a listing from GEM to the Main Board has been streamlined and new provisions under Chapter 9 have been added setting out applicable rules for a transfer.

We also enclose the filing instructions.

Coming into effect

The amendments will become effective on 1 July 2008 . Transitional arrangements for new listing applications and for compliance with the revised public float requirements are set out in the Exchange’s announcement dated 2 May 2008 .  

Please click HERE to see the amendments relating to the further development of the Growth Enterprise Market. 

Yours faithfully,

For and on behalf of

The Stock Exchange of Hong Kong Limited

Richard Williams

Head of Listing