Funding the Future Survey, trade in transition, China’s EV drive
Where are venture capital investors putting their money? Plus trade and clean energy, China’s overseas electric vehicle drive, and other key talking points from August 2024.
WHAT’S NEW THIS MONTH?
What do investors think about the prospects for venture capital activity in high-growth sectors such as tech and healthcare? We share the findings of our latest Funding the Future Survey. Also in this edition, we examine why the shift to clean energy could transform global trade as demand for materials for electric vehicles (EVs), solar panels and wind turbines grows. And we focus on China and how it is looking to drive EV sales overseas.?
Elsewhere, we eye science-based targets to cut greenhouse gas emissions. And from musical festivals to beer brewing, we put the spotlight on sustainability issues in less obvious places in our ESG Summer Series.
So, what were the key talking points? Read on to find out…
Talking point: Where are VC investors putting their money?
Theme: Disruptive Technology
Our second Funding the Future Survey shows that investors have cut back expectations of increased venture capital (VC) activity in the coming months. Yet optimism for a pick-up over a 12-month horizon remains. Indeed, most investors now see the rate environment as a VC tailwind versus a headwind previously, as the majority of VC and listed investors now anticipate a rate cut in the US in the coming months.
So where are the opportunities? In our second Funding the Future Survey, data scientist Shiva Joon, CFA and team find:
?? Venture capital investors are less bullish than in our April survey…
?? …but the majority are still optimistic about activity in the next 12 months?
??IPO expectations are on the rise, with artificial intelligence investments being the most likely exits?
Our thoughts?
“While venture capital is a significant sector in its own right, its wider influence on public markets is a key reason why we aim to give a window into the world of VC investors – their outlook, positioning, strategies, and plans,” says Joon. Elsewhere:
Clients of HSBC Global Research can find out more about our second Funding the Future Survey by reading the full report. Follow the link.
FULL REPORT ?? https://www.research.hsbc.com/R/84/rr9tlgqjKtGv77
?
Talking point: How will the energy transition transform trade?
Theme: Trade Flows
The shape of the global economy is evolving quickly. One of the major drivers is climate change – both because of its impact, and the steps being taken by governments, businesses, and individuals to tackle it.?
A global energy transition is underway, with the world shifting towards cleaner fuels for grid energy and transport. Some minerals will see demand surge, having many implications for trade flows and policy, as HSBC economists Shanella Rajanayagam and James Pomeroy explain.
Our thoughts?
Materials that are needed to build…
…are set to see a huge leap in demand in the coming years, say Shanella and James. These include rare earths, aluminium, cobalt and copper.
“By 2040, the world may need four times more critical minerals than it does today, with emerging economy exporters seemingly well placed to benefit.”
Our report looks at who sells and who buys the key materials that will gain (or lose) prominence in this shifting world.
Clients of HSBC Global Research can find out more by clicking the on the link below:?
FULL REPORT ?? https://www.research.hsbc.com/R/84/dlgjzx6jKtGv77
Talking point: Can overseas markets drive China EVs?
Theme: Future Transport
Electric vehicles (EVs) are a strategically important part of China’s new, high-tech economy. But the domestic EV market faces model oversupply and intense competition.?
Ding Yuqian Head of China Autos Research, and team believe the next leg of growth is going global. Indeed, China is already a net exporter of vehicles – and Southeast Asia, South America and the Middle East are among the markets that seem promising for Chinese automakers looking to boost their overseas sales.
But there are hurdles to overcome.
Our thoughts?
“The pace of EV adoption in some parts of the world is starting to slow,” says Yuqian.?
???Expanding overseas requires building local production plants and distribution networks…
?? as well as heavy expenditure on branding and marketing…
???…and Chinese automakers will face different regulatory and legal environments
In our view, only companies with the strongest finances will be able to meet all these challenges.
Clients of HSBC Global Research can find out more by clicking on the link to the full report.?
领英推荐
FULL REPORT ?? https://www.research.hsbc.com/R/84/cpQZHLRjKtGv77
So those are some of the top talking points for August. But our full report contains more key insights and questions on the nine themes, including:
? Energy Transition: Will Asia take the lead on green hydrogen?
?? ESG: Can companies hit emissions targets to cut greenhouse gas emissions? And from musical festivals to beer brewing, are we missing sustainability issues in less obvious places??
?? Trade Flows: Why are China Panda bonds worth watching?
Clients can find our take on all these talking points in our full report below.
FULL REPORT ?? https://www.research.hsbc.com/R/84/ltvvmscjKtGv77 ?
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The following analyst(s), who is(are) primarily responsible for this document, certifies(y) that the opinion(s), views or forecasts expressed herein accurately reflect their personal view(s) and that no part of their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report: David May
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Senior Reservoir Engineer @ GHP Exploration Egypt | Reservoir Management
2 个月so what is the impact of decreasing oil price on green energy products
Director @ HSBC Global Research | Helping clients make informed decisions | Taxi driver for two little girls | ?Hala Madrid!
2 个月Thanks for sharing, David!