According to reports, sources revealed that the Hong Kong Stock Exchange (HKEX) is studying the merger of the GEM (Growth Enterprise Market) and the Main Board, possibly through the addition of a new chapter to the listing rules. The proposed Chapter 18D of the Listing Rules will be a key component of the second phase of the HKEX's review of its listing regime, with public consultation expected before the end of this year. Sources stated that merging the GEM with the Main Board is an option to revitalize the underperforming GEM market. Currently, the GEM, as Hong Kong's second board market, faces issues such as low trading volume and a decrease in the number of new listings. As of Thursday, the GEM had 306 companies with a total market capitalization of HK$78 billion (US$9.9 billion). The Main Board had 2,455 companies with a total market capitalization of HK$47.05 trillion.
