thestandard
Hong Kong is exploring the option to allow Special Purpose Acquisition Companies(SPAC) listings on its markets.
SPAC’s have mostly been listed in the United States and raised $60 billion in the first two months of 2021.
Securities and Futures Commission (SFC) and exchange operator Hong Kong Exchanges and Clearing (HKEX) have briefed top financial leaders about SPAC’s.
Paul Chan, Financial Secretary of Hong Kong asked the financial leaders “to explore suitable listing regimes to enhance the competitiveness of Hong Kong as an international financial centre while safeguarding the interests of the investing public.”
SPAC, also known as a blank cheque company is a shell company listed on a stock exchange to raise money through its IPO to acquire a private company. This way, the private company becomes public without engaging in the complete process.