This year, no company has submitted an IPO application. Why did the Hong Kong SPAC market “shut down”?
By Liu Chenguang LCG
Drew Bernstein, co-founder and co-chairman, Marcum Asia addressed the SPAC market. While China has a large number of private companies looking to raise capital and go public, China’s Hong Kong has gone through a challenging period when it comes to launching SPACs. He continues, “if Hong Kong wants to remain competitive, some loosening of restrictions may need to be considered. Ultimately, it will depend on whether SPAC managers can find a high-profile deal or two that will capture the public’s imagination and make investment more attractive.” Investors will be able to reap the benefits. As financial gains are realized, investor sentiment may improve.”