Hong Kong 2nd Board To Be Alternative To NASDAQ

Hong Kong’s Stock Exchange (SEHK) plans to
implement a second stock market by the end of 1999 to provide a venue for
growth enterprises, giving progressive regional technology firms funding
opportunities and an alternative to NASDAQ.

Hong Kong’s second board, or Growth Enterprise Market (GEM), will provide a
venue for growth enterprises to raise public capital for expansion and
development, according to Lo Ka-shui, chairman of SEHK’s GEM Working Group
and CEO of blue-chip property investor Great Eagle Holdings.

Moreover, GEM is designed to foster the development of technology and high
value added industries in Hong Kong and mainland China, said Lo.

In a region where there are a number of firms such as Asia Manufacturing
Online, China Internet Corp., and Hong Kong Telecom IMS who are
rumored to be following Pacific Internet and examining IPO on NASDAQ, Lo
feels that the less internationally focused might consider Hong Kong’s
second board.

Lo pointed out that Hong Kong’s smaller market could not compete with
NASDAQ for the global companies, but local and regional oriented technology
companies will be attracted to GEM.

Lo admitted that such a market would not produce an “Asian Yahoo!”
right-a-way.

However, he said, “For Chinese tech and multimedia companies, Hong Kong is a
proper base for analysis with its culture and proximity to China.”

Apparently, companies wishing to list shares on Hong Kong’s growth board no
longer have to publish in a newspaper, they can publish details on the Web.