The new regime for SPAC will enhance the competitiveness of Hong Kong as an international financial center. A likely trend for family businesses will be to engage in the SPAC, their powerful network in the private equity and venture capital industries will be key for investors to rely on to choose which company to merge with.
There will be a growing pool of stable and sophisticated investors with the city’s stringent rulebooks. In the long run, Hong Kong – a maturing ecosystem for innovative and new-economy companies to develop and thrive – will become an ideal destination and a powerful magnet for SPAC development.