Hong Kong set for busiest IPO week | Green economy boasts $7.2 trillion market capitalisation | Saudi Arabia trails Singapore in VC funding
Hong Kong’s IPO market made headlines this week as it geared up to host six new listings in what amounts to its busiest week for trading debuts this year, indicating a recovery in activity following a sluggish first half.?
In other news, Volt Singapore announced plans to construct Southeast Asia’s largest public fast-charging facility for electric vehicles, supporting Singapore’s goal to phase out internal combustion engine vehicles by 2040. Meanwhile, a newly published report by the London Stock Exchange Group found that “green economy” stocks globally achieved a 198% total return over the past decade, driven by companies focused on reducing carbon emissions, making it the second-best performing sector after technology. And over in the private credit market, funds are increasingly embracing ESG investments, with managers seizing up opportunities to build funds that provide loans to green businesses. ?
Turning to China, two of the world’s biggest solar manufacturers reported losses exceeding $1 billion due to a significant oversupply in the market, which is expected to continue in the short-term. ?
Elsewhere, MENA saw venture capital investing amounting to $768 million in the first six months, marking a 34% decline from 2023 and the worst first-half performance since the Covid-19 pandemic. However, Saudi Arabia emerged as a standout market, trailing only Singapore in the broader emerging-market venture capital space. Finally, in the UK, new Prime Minister Keir Starmer pledged to rebuild Britain following Labour Party’s landslide victory in parliamentary elections.?
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Hong Kong set for busiest IPO week this year with six listings??
Six companies are set to start trading in Hong Kong this week after raising a combined HK$4.31 billion ($551 million), marking the busiest week this year for IPO debuts. The pickup in listings signals a recovery in activity in the third quarter after a slow first half. According to Bloomberg, the six debuts make it the busiest week in Hong Kong since December 18, when seven companies started trading in the financial hub.??
Singapore to host Southeast Asia’s largest EV charging hub??
Volt Singapore, a unit of Singaporean asset manager Keppel, will build an electric vehicle (EV) fast-charging hub in the city-state to serve both commercial and passenger cars. It will accommodate up to 80 charging points for buses, taxis, privately owned cars and other EVs. The first phase is expected to be operational in 2026, and the new hub is set to be the largest public-fast charging facility at a single site in Southeast Asia.???????????????????????????
Returns of $7.2 trillion green sector outpaced only by tech stocks??
According to a report from London Stock Exchange Group Plc. (LSEG), the green economy, which includes companies focused on reducing carbon emissions, achieved a total return of 198% over the past 10 years. Companies focused on energy management and efficiency were the best performers within the green complex, while renewable energy lagged.? The green economy now boasts a market capitalisation of $7.2 trillion and has recorded a 14% compound annual growth rate over the past decade.??
Private credit managers take on Wall Street’s least loved label??
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The private credit market is increasingly embracing Environmental, Social, and Governance (ESG) investments, with about 16% of the $156 billion raised by private credit funds last year allocated to ESG-focused products. The development coincides with dwindling access to loans for green businesses that are not big enough to lure infrastructure investors, creating avenues for private credit managers to target this middle segment. ?
Chinese solar sector’s recovery unlikely as glut persists??
China’s solar sector is set to face challenging times in the short-term as an oversupplied market keeps profit suppressed, Bloomberg reports. The nation’s world-leading solar industry is grappling with a deepening glut after production outstripped demand in recent years. This fierce competition at home has pushed many Chinese solar companies to seek higher premium overseas.??
Saudi Arabia trails only Singapore in emerging market VC funding race?
Saudi Arabia ranked second across the emerging-market venture capital space in the first half of the year, closely behind Singapore. Software startup Salla raised $130 million in the period, boosting the kingdom’s venture capital fundraising to $412 million. Despite this, startup funding in both the MENA region and emerging markets declined by over a third compared to the previous year, as investors sought more early-stage deals that raised less money.??
Starmer pledges to stablilise UK as Labour win huge majority?
Keir Starmer’s Labour Party achieved a landslide victory in the recent UK parliamentary election, ending 14 years of Conservative rule. The Centre-left Labour secured approximately 410 of the 650 seats in parliament. Starmer comes to power at a time when the country is facing a series of daunting challenges, including a tax burden set to hit its highest since just after World War Two and net debt nearing the annual economic output.??
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