Hong Kong Exchanges & Clearing is inviting views on the Growth Enterprise Market's future development.

HKEx today released a discussion paper, proposing three options for GEM's development.

Under the first option, GEM would be a stepping stone for companies aiming to list eventually on the main board. The regulatory approach would be primarily the same as on the main board. The process of transferring to the main board would be streamlined as far as possible for qualified candidates.

The second option proposes to merge GEM and the main board to form a single board. The merged board could be an undifferentiated market, or would have two tiers of which the growth market would form the lower tier. Existing GEM companies would be grandfathered into this board.

The remaining option proposes merging GEM into the main board. Existing GEM companies would be grandfathered into the main board. A separate new alternative market for growth companies would be opened under an enhanced regime.

The new market would be distinguished from the main board and would provide a listing venue where issuers are expected to stay for the long term. It could have a more flexible vetting regime but stricter sponsor regulation, and might be restricted to professional investors only.

Deadline: April 30