Risk and profit potential should be commensurate, opins the South China Morning Post. Blank-check companies that have been all the rage on Wall Street offer high risk and high rewards. However, they may not be suitable for retail investors, according to the news organization’s editorial.
Hong Kong is a latecomer to the SPAC game, but this also means the city has much tougher measures in place to contain the risk and shield novice investors. Regulations now clearly stipulate a timeline for completion of mergers, known as de-SPAC transactions; an outright ban on retail investors from dabbling in SPAC stocks; and rules on the qualification of SPAC sponsors.
In January, the Hong Kong stock exchange started accepting SPAC IPO applications. Its first SPAC, Aquila Acquisition Corp, backed by China Merchants Bank, debuted in March and raised $128 million. Read more.
