- Delta variant weighs on the Chinese economy, while the country’s crackdown on tech companies continues with a gaming curfew for kids
- Renewable energy infrastructure trusts eye expansion amid ESG boom
Chinese economy stumbles
European markets have started the week in an uncertain fashion, taking a lead from the weak figures in Asia overnight. As the Delta variant continues to spread in several Asian countries there are growing indications that the continent's economic recovery may be faltering. China’s service sector shrank in August with its Purchasing Manager’s Index coming in at 47.5, down from 53.3 in July and its weakest score since the beginning of the Covid crisis.
With China’s manufacturing sector barely growing, the aggregate score for both sectors slipped into contraction territory. As the country imposes new lockdowns in an effort stamp down on outbreaks linked to the Delta variant, consumer activity is being dampened. GD
China gaming crackdown
Meanwhile, the aggressive regulation of Chinese technology companies continues. In what is said to be an attempt to protect young people from overexposure to gaming, authorities have proposed restricting minors to only three hours of online gaming a week: between 8pm and 9pm on Friday, Saturday and Sunday. GD
Read more:
How the Chinese tech crackdown could hurst EM investors
Renewable energy infrastructure trusts continue to boom
An investment trust focused on European renewable energy infrastructure assets is attempting an initial public offering, continuing a proliferation of new names in the sector.
Blackfinch Renewable European Income Trust aims to raise up to £300m as it looks to invest in solar, wind and hydro assets in “less crowded markets” including Italy, Portugal and Hungary. The trust will seek a net total shareholder return of more than 8 per cent in the medium to long term.
This comes as The Renewables Infrastructure Group (TRIG) announces plans to issue new shares to repay money drawn through its revolving credit facility, while Aquila European Renewables Income Fund (AERI) seeks to raise fresh funds for future investments via a share placing. Home Reit (HOME) has similarly announced a share placing. DB
