Hong Kong approves SPAC framework

The new framework adds another dimension to Hong Kong’s listing offerings, but is unlikely to become a mainstream option in Hong Kong, experts believe.

Following the footsteps of Singapore, which in September adapted its stock exchange to accommodate blank check companies, on December 17 Hong Kong approved its own framework for the listing of special purpose acquisition companies (SPACs)

The final framework followed a 6-week market consultation that took place between September and October and included some important amendments to the original proposal

Among these were the delinking of shareholder votes and warrant redemption rights, and a tiered system for the minimum independent investment required at PIPE (private investment in public equity) stage, explained Vivian Yiu, Hong Kong-based partner at law firm, Morrison & Foerster

The firm has seen a fair level of interest...

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