Hong Kong plans to curb access for retail investors to buy and trade blank check companies as regulators in the city prepare to roll out a framework this month.

The city will propose to only allow what it deems as professional investors with assets of more than HK$8 million ($1.38 mil) to participate in both the primary and secondary market of Special Purpose Acquisition Companies, according to people familiar with the matter, who asked not to be named discussing the plan before it has been made public. 

Hong Kong is planning to issue its SPAC framework for public consultation this month, meeting a time line announced by the city’s financial secretary. While a wider investor base was preferred, most of the market participants who met with the authorities agreed to the limit because it could mitigate risks in the initial phase and ensure a smooth start to allow for an expansion later, the people said.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook