Policy level: accept and introduce SPAC listing mechanism

Although the SPAC listing mechanism has existed in the U.S. market for decades, it has only experienced a surge in the past two years. For a long time, the number of companies listed using the SPAC model in the United States has been in double digits every year. However, due to factors such as the epidemic, IPOs have become very difficult. More and more companies choose this method to list. In 2020 alone, the US market will The number of companies using the SPAC model to go public in China has skyrocketed to 248, with a total financing of $83.4 billion, accounting for 55.73% and 53.12% of the 445 IPOs and $157 billion in financing in US stocks, respectively. After entering 2021, the number of companies listed in the SPAC model will not decrease but increase. As of February, the number of SPAC listings in the US stock market has reached 201, with a financing scale of nearly 65 billion US dollars.

In view of the continuous development of SPAC listing in the US stock market, both Singapore and Hong Kong have publicly stated that they will study the introduction of a SPAC listing mechanism. At its fifteenth meeting held on March 1, 2021, the Hong Kong Financial Leadership Committee of my country emphasized: "The Committee has heard the SFC and the Hong Kong Stock Exchange on the development of SPACs in the global financial market, in order to strengthen Hong Kong as an international financial center. competitiveness, and protect the legitimate rights and interests of investors, the committee is willing to further explore a suitable listing system.”

According to the "Hong Kong Economic Times", as early as February 18 of the same year, SGX CEO Luo Wencai said: "With professional support, SGX will introduce a SPAC listing mechanism as soon as this year. "

The United States is the home base of the securities investment market. The number of SPAC listed companies in the US stock market in the first two months of 2021 alone will exceed the total number of IPOs on the Hong Kong Stock Exchange in 2020. The characteristics of SPACs suitable for listing by foreign investors and SMEs are as follows: In the post-epidemic era, it has exerted great advantages and successfully seized many high-quality listing resources. Although the mentality of "only 'beauty'" and "people have what I have" is not worth advocating, but in the fierce competition in the international financial market, policy trends play a crucial role in the competitiveness of the securities market. Taking the listing of a company with a dual-class shareholding structure as an example, the Hong Kong Stock Exchange once led to the loss of a large number of high-quality listing resources due to its non-acceptance and intolerant of the new listing mechanism.

SPAC listing is showing its ability to attract overseas listing resources and domestic small and medium-sized enterprises with a blowout growth. In the new international financial environment where institutional competition is an important factor in the securities market, in order to continue to integrate with the international market, attract foreign investment, and promote innovation in financial market transactions, my country should also embrace the SPAC listing mechanism with an inclusive attitude. Absorb and localize the SPAC listing mechanism based on national conditions.