Hong Kong gem The Nasdaq dream has been accused of becoming a "springboard" market

"A buyer's own market" for investors who fully understand the market, a similar disclaimer is hung in the 13-year-old Hong Kong Gem website.

This is a once vigorous, now the market is not to be asked. Yesterday's trading figures showed that the Hong Kong gem was traded at HK $179 million a day and the main board had a full trading amount of HK $52.91 billion, and the gem was not even on the motherboard "bucket".

From becoming Hong Kong's "Nasdaq" to "Hong Kong's B-share" to the transition to the motherboard "Springboard", the Hong Kong gem's hair journey is regrettable. "With the Hong Kong Gem case, many people are still full of doubts about the sustainable development of the mainland's gem," he said. "Although they all have value," one investment banker told the first financial daily. ”

Nasdaq Dream BROKEN

November 1999, the tide of it wave, the Hong Kong http://www.aliyun.com/zixun/aggregation/17308.html "> Gem Market to follow the United States Nasdaq market by waves, The IT industry as the gem market industry positioning, the limelight is no two. Yangtze River Life Science and Technology (00775. HK), Tom Group (02383.HK) and other science and technology network-themed enterprises are listed on the gem, more retail investors queued to subscribe to the pomp of the relevant new shares.

According to the data, there were 3 companies listed in the Hong Kong Gem in November 1999, 47 in 2000, 57 in 2001 and 57 in 2002, and more in the number of new listed companies than in the same time motherboard market.

However, over the past decade, the number of listed companies in Hong Kong's gem is in a "standing still" state. As of September 30 this year, the number of gem listed companies is 178, only three years before the opening of 164 increased 14, of which 10 are still listed this year.

The first batch of companies listed in 1999, the Hong Kong gem market on average daily turnover amounted to HK $356 million, and now 178 companies listed average turnover of only HK $139 million, it seems rather embarrassing.

The bursting of the It bubble and the lack of regulation have pushed Hong Kong's gem into a "marginal" danger. Wan, a senior investment banker, told reporters that the early days of Hong Kong's gem were modelled on the US market's access disclosure system, and all responsibilities were delegated to investment banks, as long as they were disclosed in accordance with the procedures.

"But the reality is that our private enterprise and international enterprises still have a certain distance, this method has been tried for some time after the discovery does not work, and mature market hundred years of ' contract spirit ' edification is not the same." He pointed out that the Hong Kong market had been scraped several times since 2000, when the "medium-to-share storm" that had been blowing up in the US market, and there had been a lot of problematic companies.

Evolve into a "springboard" market

Guotai International executive director and head of corporate finance and equity capital markets, Wang Dongqing told reporters that the technology network boom and "fairy stock turmoil" on the Hong Kong gem has been a big blow, resulting in its liquidity and earnings ratios are far lower than the motherboard.

Another market person who has studied B shares for many years says the gem is very similar to the mainland B-share market. At the same time, its shell companies and "cents" flooded with "reputation" to deter institutional investors.

Now mainland B-share companies are starting to look for a way out, and the central set of "H-turn" will be listed in mid-December. Wang Dongqing that after 2008 years, the Hong Kong regulator will make a positioning adjustment, after the gem is listed, the enterprise will be able to go to the motherboard after meeting certain conditions, thus making the gem and the motherboard "not too open".

According to him, mainland enterprises to the GEM listing has been no restrictions on the gem after the listing of enterprises as long as only two consecutive years of cash inflow of not less than HK $20 million, as well as shareholders in the past year has not changed, can be converted to the motherboard listing.

Compared to the requirement of a direct board listing of at least HK $50 million in the past three financial years, a minimum of HK $200 million and at least $50 million, the Hong Kong gem can even be listed without real business and then become a board listing, which is a good springboard.

The HKEx pointed out in May 2008 that after discussions with the SFC, it would be a suitable future direction to reposition the gem as "the second board and the stepping stone of the main board".