Record-Breaking Chinese IPOs and Exxon’s Emissions
The Semiconductor Manufacturing International Corporation sounds like it belongs in a criminal mastermind’s plotline in a typical James Bond film. It actually belongs on the Shanghai STAR Market in China, following the biggest initial public offering (IPO) in the nation’s history. It saw its stock price triple (yes, triple!) on its first day trading publically!
This is China’s largest chipmaker. It’s got $6.6 billion in crisp new notes to spend on growth into the semiconductor market, taking on America stalwarts like AMD and Nvidia. This is a sign of clear intent given how fierce the trade war is getting between China and the US!
Exxon Mobil isn’t expanding its operations like SMIC, it’s reigning them in. Exxon is one the oil giants pledging to cut greenhouse gasses. There’s a radical ESG movement towards renewables and politicians have their crosshairs on this fossil fuels company.
The target is to lower carbon dioxide per barrel of oil from 23 kilograms to 21-22 kilograms, hardly a big difference, but progress toward combatting climate change has always been slow.
These measures to reduce emissions will come at a cost to Exxon. Investors will weigh those costs when they’re made available at the company’s next earnings release against the stock-elevating benefits that come with inclusion in funds that demand a minimum ESG score!
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.