Mr Lo is quoted in the Hong Kong Standard as saying: 'Whether a stock exchange is successful lies on its ability to raise funds for companies, but not the ups and downs of stock prices. Raising money is the most important function.' Mr Lo says that the GEM has fulfilled that function - to raise funds for technology companies: 'Technology is not feasible without capital,' he said.

The GEM raised a total of US$1.83bn (HK$14.27bn for the nine months to the end of September this year, but nonetheless share prices of the 49 companies listed on the GEM are, for the most part, very disappointing, with around two thirds of them now priced below their issue price. Mr Lo, however, says that falling stock prices are inevitable when there is a global technology share meltdown. He told the Hong Kong Standard: 'You can't blame the GEM board when there is a global technology meltdown - investors just don't seem to like tech shares. That's nothing to do with our rules, the GEM board or the stock exchange.'

Mr Lo pointed out that the GEM is not exclusively for Internet companies - it does list more traditional companies such as software-related firms. He also stressed that many GEM companies had recorded profits.

Mr Lo has in the past been criticised for "unfairness" on the GEM. In a recent Reuters survey, 8 out of 25 companies said they were concerned about the unfairness of regulations on the GEM. The Internet company Tom.com was usually quoted as an example, as it was given two waivers for its listing - a shorter share lockup period and an increased limit on the stock options. But Mr Lo says most GEM-listed companies now have waivers: 'That's what the market wants,' he said, adding that the rules will not be tightened for the board in the future.

Mr Lo said: 'People are arguing is the share lock-up period not long enough? Is the share option scheme too loose? Is the track record not long enough?....These things are ridiculous. If the company discloses to you it has only one day's track record, then you make your own decision whether or not you want to buy its shares....that is the philosophy of a disclosure-based regime.'