China Resources raised a cool US$3.61 billion in the recent IPO of its New Energy business and even then, on debut in Shenzhen yesterday, the shares rose as much as 198% – details thanks to Nikkei here.
It’s a reminder of what I said in Singapore last month, namely that every host government looking to decarbonise its economy and reduce its reliance on the Straits of Hormuz needs to balance offerings from China against those from “the West”, in Asia principally Japan and Korea, and even if it means creating an alternative dependency in that 80% of solar panels and 60% of wind turbines come from China.
In that balancing, all of the add – on costs of backup generation, often longer transmission, upgrade of that grid to handle the intermittency, responsible disposal at end of life – all also still need to be compared. As ever, advice is needed.
