The Stock Exchange of Hong Kong announced November 15 the launch of its Growth Enterprise Market ( GEM), an alternative stock exchange for emerging companies to raise funds for business development.

The stated mission of GEM is to become a successful stock market in its own right known for its quality, level of transparency, level playing field, orderly transactions as well as investor protection, Financial Secretary Donald Tsang said at the GEM launching ceremony.

"It targets at growth enterprises from all industries and of all sizes, with the objective of allowing these enterprises easier access to capital," Tsang stressed.

The concept of creation of a second stock market in Hong Kong was first mooted in 1987, and the exchange has already admitted more than 30 firms as approved GEM sponsors and received nine formal listing applications.

"This is encouraging," Tsang said, adding that he was sure that the exchange would keep up the good work and develop GEM to its full potential before long.

GEM will benefit not only the emerging enterprises in Hong Kong, but also those in the mainland, in the region and elsewhere in the world, he said.

With the establishment of GEM, Hong Kong plays an even more important role as the major fund-raising center outside the mainland for the mainland enterprises, Tsang added.

Tsang said that a successful GEM will help attract venture capital to Hong Kong and gives retail investors a new opportunity to invest in rapidly growing companies and to share the profits of their success. (Xinhua)