Submission to HKEX – Special Purpose Acquisition Companies

On 29 October 2021, ACGA sent a letter to the Hong Kong Exchanges and Clearing (HKEX) in response to its consultation paper on special purpose acquisition companies (SPACs). While we understand the need for global exchanges to remain competitive and innovative in attracting capital, it is our view that this particular fundraising mechanism is unsuitable for markets with high retail participation and negligible legal recourse for minority shareholders in the event of corporate malfeasance.