NEWS RELEASE
November 17, 1999
The Stock Exchange of Hong Kong has amended with immediate effect the GEM Listing Rules governing the public float requirements and accounting standards.
Lower minimum public float limits have been established to maintain an open market in securities while at the same time giving issuers more flexibility.
Companies with a market capitalisation of less than HK$1 billion at the time of listing are now subject to a minimum public float of 20 per cent, with a minimum value of HK$30 million.
Companies with a market capitalisation of HK$1 billion or more at the time of listing are subject to a minimum public float of 15 per cent, or whatever higher percentage is necessary for shares valued at a minimum of HK$200 million to be in public hands at the time of listing.
The GEM Listing Rules on accounting standards have been amended to allow the preparation and reporting of financial statements in accordance with Generally Accepted Accounting Principles in the United States of America by issuers listed on GEM and either the New York Stock Exchange or the NASDAQ National Market.
Prior to the rule amendments, all GEM issuers are required to prepare and report their financial statements in accordance with the Hong Kong Statements of Standard Accounting Practice or the International Accounting Standards issued by the International Accounting Standards Committee.
Dr K. S. Lo, chairman of the GEM Listing Committee, said the amendments would offer greater flexibility to listing applicants or issuers without lowering the level of investor protection.
Corporate Communications Department
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