© Reuters. FILE PHOTO: HKE logo is seen at the financial Central district in Hong Kong

HONG KONG (Reuters) – Hong Kong is exploring whether to allow Special Purpose Acquisition Companies (SPAC) to list in the Asian financial hub, according to a government statement, indicating that a largely U.S. phenomenon could be going global.

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. They raised $60 billion in the first two months of 2021, Dealogic data showed, already more than 70% of 2020’s annual deal value.

Hong Kong’s markets regulator, the Securities and Futures Commission (SFC) and exchange operator Hong Kong Exchanges and Clearing (HKEX) briefed a forum of top financial leaders in the city about latest developments in SPACS on Monday, according to the statement issued that evening.

The Financial Leaders Forum, which is chaired by Hong Kong’s Financial Secretary, Paul Chan, had asked the two organisations “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.”

Chan said in an interview with Bloomberg TV on Tuesday that the government was seriously looking into allowing SPACs.

Several Hong Kong tycoons, including Richard Li, the son of Hong Kong’s richest man Li Kashing, have set up SPACs already or are working on doing so.

Even without SPACs, Hong Kong was the second most popular listing venue in the world in 2020 with deals worth $31.2 billion, compared to Nasdaq’s $51.3 billion, according to Refinitiv data.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *