Full Breakdown
HKEX Mulls Merger of GEM with Main Board via New Listing Chapter
8/27/2026, 10:04:37 PM
Core Proposal: Introducing Chapter 18D
Hong Kong Exchanges and Clearing (HKEX) is assessing a plan to merge the Growth Enterprise Market (GEM) with the main board by creating a new “Chapter 18D” within its listing rules. The proposal, part of the second phase of a broader review of Hong Kong’s listing regime, would be opened to public consultation by the end of the year. Chapter 18D is intended to provide a dedicated set of requirements for smaller-sized companies, offering an alternative to the existing separate GEM platform.
Background: GEM’s Underperformance and Prior Reforms
Since its 2018 overhaul, HKEX has introduced specialized chapters—18A for pre-revenue biotech firms, 18B for special-purpose acquisition companies, and 18C for large technology firms lacking revenue—to accommodate companies that do not meet general listing standards. Despite these measures, the GEM board has seen minimal turnover and few new listings, prompting internal studies that question the board’s effectiveness in supporting smaller enterprises.
Expected Impact on Listings
Merging GEM into the main board under Chapter 18D could streamline the listing process for emerging firms, potentially increasing the flow of new issuances and improving market liquidity.
Official Outlook
HKEX officials, as reported by the source, view the creation of Chapter 18D as a “better option” for allowing smaller players to list, citing long-standing studies on GEM reform. The move is framed as a reboot of the underperforming GEM, aiming to align listing requirements more closely with the needs of emerging businesses.
Next Steps
The proposed Chapter 18D will be subject to a public consultation process that is scheduled to conclude by the end of the year, after which HKEX will decide whether to incorporate the new chapter into its official listing framework.
