php editor Youzi will introduce to you today several requirements for GEM to main board transfer. Transferring from the GEM to the main board is the only way for many companies to develop, but it also needs to meet certain conditions. During this process, the company needs to comply with the listing requirements of the main board, including the number of shareholders, profitability, equity structure, etc. Only by meeting these requirements can the transfer from GEM to the main board be successfully completed. Next, we will analyze these key requirements in detail to help everyone better understand this process.
According to the current listing rules of the Hong Kong Stock Exchange, companies listed on GEM that apply to transfer to the main board must meet the main prerequisites for listing on the main board:
A. The issuer and its business must be listed on the Stock Exchange Those deemed suitable for listing. Issuers or groups (other than investment companies) whose assets are all or mostly cash or short-term securities will generally not be considered suitable for listing;
B. The issuer or its group must be under similar management Under management, generally have a business record of no less than three fiscal years.
During this period, the profit attributable to shareholders in the most recent year shall not be less than HK$20 million; and the cumulative profit attributable to shareholders in the previous two years shall not be less than HK$30 million;
C. The estimated market value of the new applicant at the time of listing shall not be less than HK$100 million, and the estimated market value of the securities held by the public shall not be less than HK$50 million;
D. The listed securities have a public Market:
- 25% of any class of listed securities must generally be held by the public.
If the issuer’s estimated market value exceeds HK$4 billion, the ratio held by the public can be reduced to between 10% and 25%;
——If it is a new category of securities For listing, each issue of securities worth HK$1 million must generally have no less than three holders, and the number of holders is at least 100;
E. New applicants must make all necessary arrangements, Make its securities meet the qualification standards set by Hong Kong Clearing Corporation and be deposited, delivered and settled in the Central Clearing and Clearing System.
1. Transfer to the main board refers to the transfer of NEEQ stocks to the main board for listing.
2. New OTC companies that have been listed on the selected level for a certain period of time and meet the exchange’s listing conditions and relevant regulations can directly transfer to the board for listing.
3. The main board refers to the Shanghai and Shenzhen main board markets. The Shanghai and Shenzhen main board markets, the GEM and the Science and Technology Innovation Board are all on-site exchange markets, and the corresponding companies are all listed companies; the OTC market is one of the exchanges. In markets other than the New Third Board, regional equity trading markets, and brokerage OTC markets, the corresponding companies are all unlisted companies.
If a company delisted from the GEM meets the conditions for listing on the main board, it can apply to resume listing on the main board after one year.
This is because the "Stock Transfer Rules for Listed Companies" stipulates that companies delisted from the GEM can apply for transfer to the main board for listing after one year, but they need to meet the main board listing conditions.
If the company has met the conditions for listing on the main board before delisting, it can directly apply for resumption of listing on the main board.
The specific steps are as follows:
1. The company needs to re-prepare and publish the prospectus to comply with the relevant regulations for main board listing.
2. The company needs to submit application materials, including prospectus, financial statements, audit reports, etc.
3. The company needs to pass the review of the China Securities Regulatory Commission and obtain a listing license.
4. The company needs to apply for listing on the stock exchange and undergo exchange review.
5. The company needs to conduct investor education and publicity before going public to increase market visibility and recognition.
It should be noted that the resumption of listing on the main board of a company delisted from the GEM is not guaranteed to be successful. The company needs to have good financial status, performance and market prospects to gain the recognition of investors and the market. support.
The application process for transferring GEM to Main Board listing:
1. First, the issuer must be a suitable listed investor confirmed by the Stock Exchange.
2. The issuer or its company is managed by similar management and has a business record of more than three fiscal years.
2. The issuer or its company is managed by similar management and has a business record of more than three fiscal years.
4. The public must hold 25%. If the issuer’s expected market value exceeds HK$4 billion, the ratio held by the public can be reduced to between 10% and 25%;
5. If a new category of securities is listed, each issuance of securities worth HK$1 million must have more than three holders.
6. New applicants must make their securities comply with the Hong Kong Clearing and Clearing Standards. Delivery, deposit and settlement can be handled in the Central Clearing and Clearing System.
The GEM and the Main Board are two different types of markets. They cannot be converted to the Main Board, but they can both be traded.
The GEM, also known as the second board market or the second stock trading market, is a type of securities market different from the main board market. It is designed for entrepreneurial enterprises, small and medium-sized enterprises and high-tech industrial enterprises that are temporarily unable to be listed on the main board. A securities trading market that provides financing channels and growth space for companies that need financing and development.
It’s not allowed to be listed first. The GEM is an innovative enterprise.
The review and approval time is one year
It is required to fully comply with the "Main Board Listing Rules", including the issuance of listing documents. Listing from one market to another is purely a commercial decision of the listed company. The Exchange will ensure that when a GEM issuer transfers its listing to the Main Board, the company's securities trading will be smoothly transitioned.
1. Qualifications for transfer (Article 9A.02 of the "Main Board Rules")
1. Meet the Main Board listing requirements;
2. Be listed on the GEM for more than 1 year;
3. In the 12 months before the application for transfer to the main board until listing on the main board, the company did not violate any listing rules and became the subject of disciplinary investigation by the exchange.
2. Transfer mechanism (Main Board Rules 9A.03(2) and 9A.08 and GEM Rules 9.26)
1. No sponsorship is required Person;
2. The issuer must publish an announcement, which must be reviewed in advance by the Listing Division and approved by the Listing Committee. The financial adviser does not have to comment on the letter that does not require public disclosure but requires a director's guarantee
GEM transfer refers to an operation of transferring GEM stock shares to the main board market. The following is the general process and approximate effective time:
1. Contact the Securities Sales Department Or brokerage firm: As an investor, you need to contact your securities business department or brokerage firm and inform them that you want to transfer GEM stocks to the main board market.
2. Submit relevant application materials: According to the requirements of securities institutions, you need to fill in the application form and provide relevant securities information, such as GEM stock code, transfer number, etc.
3. Review and processing: The securities agency will review your application and handle it accordingly, including contacting and coordinating with the exchanges on the GEM and main board markets. The timing of this phase may vary by institution.
4. Announcement becomes effective: Under normal circumstances, the effective time of the GEM transfer is based on the regulations of the exchange and will take effect after the exchange announces it. The specific time may vary depending on the exchange's processing efficiency and work schedule, but is usually a few days to a few weeks.
Generally speaking, the processing time for GEM transfer will be affected by multiple factors, including the processing efficiency of securities institutions and the approval speed of exchanges. It is best to keep in close contact with your securities institution to understand the progress of the process and obtain an accurate time estimate.
Transfer means that the company's shares are transferred from one stock exchange to another stock exchange for trading. This transfer may occur when a company's business development, market capitalization, liquidity or other reasons cause the company to wish to change the listing location of its shares.
Normally, companies will choose to transfer stocks from the lower market or secondary market to higher-level exchanges in order to increase the company's visibility, attract more investors, and obtain better market evaluation.
The transfer process needs to comply with relevant laws, regulations and exchange regulations, and undergo approval and review. Companies need to meet certain conditions, such as market value, financial status, liquidity and other requirements. Transferring a board may also involve some fees and charges.
The transfer will have a certain impact on investors, including changes in the exchange's regulatory rules, changes in market participants, changes in transaction execution methods, etc. Investors need to pay attention to relevant information and make reasonable investment decisions based on their own circumstances.
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