HKEX proposes prudent approach on SPAC listings

The public consultation will end on 31 October.

The Stock Exchange of Hong Kong (HKEX) has proposed to adopt a prudent approach on special purpose acquisition companies (SPACs) with multiple safeguards or restrictions at each different stage of a SPAC.

“As Asia’s premier global listing market, HKEX is always looking for ways to enhance its listing framework, striking the right balance between delivering appropriate investor protections, market quality, and market attractiveness. We believe the introduction of a Hong Kong SPAC listing framework will provide another attractive route to listing in Hong Kong, allowing more companies from Greater China, Southeast Asia, and beyond to seek a listing on HKEX,” said the head of listing, Bonnie Chan.

A SPAC is a type of shell company that raises funds through its listing to acquire a business (a De-SPAC Target) at a later stage (a De-SPAC Transaction) within a pre-defined time after listing.

The proposals would represent a SPAC listing regime in Hong Kong more stringent than that of the United States.