Hong Kong to Allow SPAC Listings Jan. 1
Hong Kong is joining the rush by global stock markets to enable blank-check organizations to raise funds for buying other companies, but it plans to impose tougher rules than the U.S. and Singapore.
Bourse operator Hong Kong Exchanges & Clearing Ltd. (HKEX) issued rules for share sales by special purpose acquisition companies (SPACs) that take effect Jan. 1. A SPAC is a company created to raise money by selling shares on a stock exchange. The funds are then used to acquire another company. SPACs have soared in popularity since last year as international financial hubs in Europe and Asia rush to embrace the listing mechanism or ease requirements.
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