Why Is It Moving? Looking Into Why SeaChange International’s Stock is Trading Higher Today
Erin Clark, 29 March 2021
Hong Kong Is Set to Target First SPAC Listing by End of Year
(Bloomberg) — Hong Kong is expected to have its own blank check company listing framework ready in June for public feedback and targets allowing deals to start by the end of this year, according to people familiar with the matter.The city is looking at tighter rules for sponsors of special purpose acquisition company listings and their buy-out targets than those enforced in the U.S., said the people, who asked not to be named discussing internal deliberations.
Officials are keen to address concerns springing up around the hundreds of publicly traded shell companies that have raised money on New York exchanges with the goal of buying a profitable business down the line, the people said. Hong Kong’s financial chief, Paul Chan, has directed the regulator and the stock exchange to come up with a framework that fits its market as the Asian financial hub seeks to get in on a boom in SPAC deals that has mainly been centered in the U.S.
Some of the city’s biggest tycoons, including Adrian Cheng, are preparing to or have raised such funds in the U.S.Hong Kong is racing with rival Singapore to become the first Asian hub to green light such vehicles. Yet, after years spent squeezing out shell companies that were seen as a hotbed for pump-and-dump stock manipulation, authorities are taking a cautious approach.
Acquisitions by SPACs will have to meet the existing standards for initial public offerings, the people said. The rules also envision a set of conditions for sponsors to meet, including having a track record of managing money, one person said.The time-line could still change should unforeseen regulatory concerns arise, the people said. The guiding principle is to keep the current vetting system of IPOs and reverse takeovers in place and introduce a long-term framework for SPAC issuance, they said.
