HONG KONG, June 16 (Reuters) - The Hong Kong stock exchange published on Friday a long-awaited proposal to introduce a new board for pre-profit companies and issuers with non-traditional corporate governance structures in a bid to attract foreign issuers who have typically chosen New York over the Hong Kong bourse.
Hong Kong Exchanges and Clearing (HKEX) also published a separate proposal to tighten listing rules for its Growth Enterprise Market (GEM) to address concerns over the quality of companies coming to the exchange’s second board.
The new board would exclusively list ‘new economy’ companies in sectors such as internet and biotech, with separate segments for start-ups and established companies, the bourse said.
The HKEX proposed raising the bar for listings on the GEM and for transitioning from that board to the main board.
Reporting by Elzio Barreto and Michelle Price; Editing by Jacqueline Wong