China Takes Control Over Offshore Listings

    For two decades, IPOs by most Chinese companies on U.S. stock markets have existed in a regulatory no man's land. Technically, investment in the sectors most enticing to overseas investors — including internet, media, telecom, and education — was off-limits to foreign ownership. But beginning with the listing of Sina Corporation in 2000, Western lawyers and investment bankers were able to successfully skirt these rules using a variable interest entity, or VIE, structure. Foreign investors could not own the assets of or exert direct control over the Chinese operating company but theoretically had a claim on the profits and cash flows and the right to acquire ownership should Chinese law change to make that permissible in the future.

    In IPOs

    How Much Cash Is in Your SPAC?

    If you look at the headline numbers, SPACs appear awash with cash. In 2021 alone, 436 SPACs have raised $126 billion, for an average of $289 million apiece, according to SPAC Insider. Today, over 450 SPACs are scouring the universe for an enticing private company target into which to deposit their bag of money.

    In SPACs

    Will SPACs Catch Fire with Asian Tech Tigers?

    Ticking clocks, clogged PIPEs, China's listing crackdown, and Singapore’s big news are the talk of the Asia SPAC forum

    Last week, a flurry of news was made at the inaugural Asia SPAC Management Bootcamp, a virtual conference presented by Marcum Bernstein & Pinchuk LLP (MBP), along with Baker McKenzie

    In Cross Border M&A, Investing in China, SPACs

    SPACS and Short Sellers Mix It Up

    What can management do to avoid becoming the next short-seller roadkill?

    With 417 funded SPACs currently in search mode for the perfect private company to merge with, 2021 is becoming the “Year of the de-SPAC” following the “Year of the SPAC” in 2020 that carried over into the exuberance of the first quarter of 2021. These SPAC sponsor teams are sitting on about $140 billion of capital in trust, supplemented by tens of billions more in PIPE investments, which could theoretically generate a trillion dollars of market capitalization for newly formed public companies.

    In SPACs

    All Eyes on Southeast Asia as Next SPAC Hunting Ground

    A High-Growth Debutante Ball of sorts is months away. Dateless SPACs (i.e., special purpose acquisition companies) would be wise to fix their gaze on the hot young Southeast Asian start-up market if they don’t want to be left without a dance partner.

    In SPACs

    The Righteous Rage of Carson Block

    Famed Short Seller Lets Loose on SPACs, China, Robinhood, and Archegos

    Reveals How He Would Run the SEC and the Concept Behind a New Long Fund

    Carson Block is the most famous short-seller of his generation, known for tome-length, densely researched short reports that eviscerate companies where he believes management is lying and taking shareholders to the cleaners. He is not afraid to use the f-word — “fraud” — in his reports. And as you will discover in this interview, his views on the market are laced with f-bombs and salty stories as well. So, trigger warning, folks: if you are squeamish about looking under the rock that is sometimes Wall Street, this interview may not be for you.

    In Forensic Accounting, Investing in China, China short-selling, SPACs