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HONG KONG, June 12 The Hong Kong stock exchange
will launch on Friday long-awaited consultations on a review of
the city's growth enterprise market (GEM) board and on whether
to establish a trading board for young firms with non-standard
share structures, its CEO said.
This comes amid general debate about Hong Kong's corporate
governance rules and attractiveness as a listing destination.
The city was the world's biggest IPO venue last year but has
struggled to attract technology and so-called new economy
companies due to its profitability requirements and ban on
weighted voting rights, which many tech firms prefer.
"Details of the reform of the second board (GEM) and the
introduction of the third board will be announced this Friday,"
Chief Executive Charles Li said at an event in Hong Kong on
Monday. "We believe all that will help maintain Hong Kong's
Concerns have grown over the quality of companies listed on
the GEM board, with many stocks jumping sharply on the first day
of trading, fuelling fears over market manipulation, Li said.
On the long-awaited bond connect scheme to link China's $8
trillion bond market with overseas investors, Li said only that
the HKEx was "rushing" to get everything in place.
Plans for a "Bond Connect" programme have been percolating
since Beijing launched a scheme allowing two-way trading between
the Hong Kong and Shanghai stock markets in 2014, but the
authorities have provided few details on the mechanics or the
(Reporting By Michelle Price and William Ho, Writing by Anne
Marie Roantree; Editing by Himani Sarkar)