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In view of the resurgence of locally transmitted COVID-19 cases, the Hong Kong Institute of Certified Public Accountants announced the closure of the library facilities from Friday, 7 January 2022 onwards, whilst the counter services remain normal.

For the latest advice, guidance and other updates, from the Institute, regulators and other bodies, please visit our regularly-updated COVID-19 – CPA Information Centre webpage.

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Special Purpose Acquisition Company (SPAC)


Listing of SPACs in Hong Kong 

Due to the proliferation of SPACs IPOs in recent years especially in the US1 , the Securities and Futures Commission (SFC) and the Hong Kong Exchanges and Clearing Limited (HKEX) were asked in the Financial Leaders Forum chaired by the Financial Secretary, Mr Paul Chan, on 1 March 2021 to explore suitable SPAC listing regimes to enhance the competitiveness of Hong Kong as an international financial centre while safeguarding the interests of the investing public.


Subsequently, in September 2021, the HKEX has published a consultation paper seeking public feedback on proposals to create a listing regime for SPACs in Hong Kong (Consultation Paper). The related Consultation Conclusions was published in December 2021 and the regime became effective from 1 January 2022. .  

 

Activities by the Institute to support consistent application 

In January 2022, the Institute published Accounting considerations for a Special Purpose Acquisition Company. The publication describes the structure and lifecycle of a typical SPAC and highlights certain key accounting considerations that may be relevant to a typical SPAC throughout its lifecycle.

 

The Institute is closely monitoring the development of the SPAC listing regime and will consider issuing additional guidance if necessary. 

 

The Institute has organized webinars to provide stakeholders with knowledge of SPACs, including:

 

Other useful resources

There are many accounting issues that a SPAC should consider throughout its lifecycle. The materials below also highlight some of these issues. 

 

Note 1: IPO funds raised by SPACs in the US increased six-folds from US$13.6 billion in 2019 to US$83.4 billion in 2020.

 

 

Last updated: 21 January 2022

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