Morrison & Foerster partners Marcia Ellis and Vivian Yiu are quoted in an article “SPACs: Longer menu” on 26 October 2021.
As the U.S. recovers from a glut in SPAC fundraising, Asian jurisdictions are launching their own regimes. “Some Hong Kong SPACs will list, for policy reasons if nothing else – sponsored by tycoons trying to gain goodwill from the government or by Chinese financial institutions,” Marcia said.
Several of the procedural attractions a SPAC merger has over a traditional IPO in the US would be muted in Hong Kong under the proposals. Having the merged entity meet the same requirements that apply to all newly listed companies negates the speed advantage, while the ability to share financial forecasts in listing documents is tempered by the need for comfort letters from reporting accountants and sponsors. “The larger reporting accountants and sponsors may not be willing to do this,” said Vivian.