Heightened oversight of foreign listings by China’s tech unicorns and an uncertain regulatory environment could weigh on the pace of deals by SPACs seeking to acquire Chinese companies as they deploy huge financial war chests raised in the past year, the South China Morning Post reports, citing deal makers and sponsors.
Blank-chece companies raised more than $105 billion in the first half of this year and sponsors – both based in Asia and in the US – have been increasingly turning their attention to targets in Asia, particularly growth companies in China, as the marketplace has become more saturated. China is home to two-thirds of Asia’s tech unicorns.
However, a new slate of draft rules announced last week by the Cyberspace Administration of China threatens to slow the rate of US listings by Chinese tech companies – and attractiveness of those companies to American investors. Read more.
