On 1 March 2021, the Securities and Futures Commission (SFC) and The Stock Exchange of Hong Kong Limited (HKEx) briefed a forum of top financial leaders in Hong Kong about the latest developments in Special Purpose Acquisition Companies (SPACs).
Financial Secretary Paul Chan directed the SFC and HKEx to study the feasibility of listing SPACs in Hong Kong. The aim is to allow the new fundraising arrangements while upholding investor protection.
A SPAC is a blank-cheque company that raises money through an initial public offering (IPO) with the intention of merging with another firm, allowing that business to list more quickly.
Most SPACs so far have listed in the United States. SPACs in the U.S. raised $60 billion in the first two months of 2021, Dealogic data showed.
Hong Kong’s main Asian competitor, Singapore, is also looking at opening up its market to SPACs.