HK proposes new listing regime for SPACs with tight restrictions

The proposal is open for public consultation.

The Stock Exchange of Hong Kong proposed changing its rules to allow special purpose acquisition companies (SPACs) to list with tighter restrictions than elsewhere as it becomes the latest to tap the desire for such investment vehicles, according to a Reuters report.

The move faces concerns that tough restrictions would mean the exchange would not be an attractive place to list a SPAC.

Under HK's proposals, only professional investors would be able to invest in a SPAC until it has merged with a target company, and the firms sponsoring a SPAC must include at least one institution licenced by the local securities regulator.

"We're confident that this will not go against what we're doing in terms of tightening (rules for) shells, and that enough shareholder protections and other safeguards have been introduced," Hong Kong Exchanges and Clearing Head of Listing Bonnie Chan told Reuters. She added that a lot of companies had expressed interest in exploring a SPAC listing in Hong Kong and that according to HKEX's count, 25 US-listed SPACs are headquartered in greater China, and approximately 12 companies in Asia have been acquired by a SPAC in recent years.

Join Hong Kong Business community

The proposal is open for public consultation. The deadline set for responding is until 31 October.

Hong Kong's rival Singapore Exchange unveiled its final rules for SPACs to list earlier this month, after easing some measures viewed as too strict by participants following market consultations.

Follow the link s for more news on

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Commercial floors at 382 Lockhart Road up for sale
The indicative price is set at $398M, or approximately $8,405 per square foot.
Hong Kong logistics rental softens in H1
Tenants’ adjustment and tariff risks dragged rental prices and activities.
HKMA fines three banks for violating anti-money laundering policies
HKMA ordered fines and formulation of remedial measures.The Hong Kong Monetary Authority (HKMA) has conducted disciplinary action against Indian Overseas Bank, Hong Kong Branch (IOBHK), Bank of Communications (Hong Kong) Limited (BCOM(HK)), and Bank of Communications Co., Ltd., Hong Kong Branch (BCOM) for violating the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Chapter 615 of the Laws of Hong Kong) (AMLO) on 22 July.