VIEWPOINT
Hong Kong SPAC is listed or will be launched soon and will be consulted. | SPAC
 
Release Time:2021-05-27 14:13:11| Browse Number:
 

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Hong Kong Secretary for Financial Services and the Treasury Xu Zhengyu said in an interview with Bloomberg that he would launch a public consultation on the introduction of the SPAC (Special purpose acquisition) listing mechanism in Hong Kong in the near future.


In the United States, the number of listings through the SPAC mechanism has greatly increased this year, and many local tycoons have also participated in the local SPAC listing. 

The Financial Secretary, Mr Paul Chan, has disclosed earlier that the HKEx and the SFC are studying the feasibility of introducing SPAC for listing in Hong Kong, with a view to increasing new fund-raising channels while maintaining Hong Kong's reputation in investor protection. 

Zhang Yufeng, director of Huifeng International Development, believes that the long SPAC, consultation period should be implemented as soon as possible. On the one hand, it may cause Hong Kong wealthy families who originally intended to set up SPAC to transfer their funds to the mature US market. On the other hand, if Hong Kong lags behind other Asian markets such as Singapore, it will be uncompetitive and difficult to obtain capital favor. 
When introducing SPAC into Hong Kong, Zhang Yufeng said that Hong Kong's own characteristics should be maintained and suggested that the Hong Kong Securities and Futures Commission should set up a special SPAC department to supervise and investigate the background of SPAC sponsors and the content of mergers and acquisitions. At first, appropriate industries that are intended to support development should be selected, such as projects that do business with Southeast Asia and the mainland. 

Zhou Qianru (Angela), chairman and founder of Hong Kong family office Zhenzhuo (Cachet), pointed out that the biggest problem when the supply of SPAC exceeds demand is that it is difficult to find good target companies. She said that Hong Kong regulators have cracked down on shell stocks in the past, and if SPAC is introduced, it is necessary to clarify the standards so as not to create contradictions in regulatory thinking.