Hong Kong SFC: GEM-Main Board Integration Still Under Study, Public Consultation to Be Launched
nashnova research
SFC CEO Julia Leung confirmed the proposed merger of Hong Kong's GEM and Main Board remains under study, with HKEX set to launch a public consultation. The two boards' market caps differ by over 600× — the review aims to streamline listing structures and boost the city's capital-market appeal.
How wide is the gap between GEM and the Main Board?
As of September 24, HKEX hosts 2,767 listed companies: 2,461 on the Main Board, just 306 on GEM.
The market-cap gulf is starker — Main Board at HK$45.58 trillion, GEM at just HK$74.5 billion, a ratio of over 600 to 1.
This means → GEM is virtually a rounding error in the Hong Kong equity landscape; running it as a standalone board is increasingly hard to justify on cost alone.
Why is a merger on the table now?
HKEX is studying the feasibility of combining both boards, targeting a simpler listing framework and higher operational efficiency.
In plain terms = two boards means two rule sets and two sets of thresholds, but GEM's scale is so small it amounts to "maintaining an entire system for 300 companies."
SFC CEO Julia Leung said the plan is still at the research stage; HKEX will open a public consultation to gather broad market feedback.
What does the wider IPO backdrop look like?
PwC expects Hong Kong's full-year 2026 IPO proceeds to reach HK$380 billion, 8.6%–18.8% above its earlier forecast of HK$320–350 billion.
That would keep Hong Kong firmly among the world's top three IPO markets.
This means → the merger debate is unfolding during an up-cycle for Hong Kong listings — reform windows are far easier to open when the market is rising.
What comes next?
The public consultation outcome and market feedback are the key variables that will determine whether — and when — the merger proceeds.
PwC believes Hong Kong's IPO growth momentum will carry into 2027, despite near-term headwinds from geopolitical tensions, inflation, and rate volatility.
This reflects a broader shift: the market question has moved from "should Hong Kong reform its listing structure?" to "how, and on what timeline?"
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