ST Engineering Joins Forces with Kazakhstan Paramount Engineering
In a major strategic move, Singapore’s ST Engineering has partnered with Kazakhstan Paramount Engineering (KPE) to produce state-of-the-art armored vehicles. Combining ST Engineering’s cutting-edge technology with KPE’s advanced manufacturing capabilities, this alliance aims to meet the rising global demand for versatile and high-performance defense solutions.
This collaboration is set to capitalize on the increasing need for armored vehicles worldwide, especially as geopolitical tensions and modernization efforts drive up defense budgets. Production will occur at KPE’s facilities in Kazakhstan, leveraging local expertise while expanding ST Engineering’s global footprint.
China: MAO GEPING IPO Soars with $90.5 Billion Subscriptions
Premium beauty brand MAO GEPING (01318.HK) has captured investor enthusiasm, with its IPO attracting a record-breaking $90.5 billion in subscriptions on the Futu Securities platform. At the upper limit of its offer price range ($26.3-$29 per share), the cosmetics giant plans to raise US$270 million, issuing 70.58 million H-shares.
Key highlights of the IPO include:
- Oversubscription: Over 702 times, surpassing CR Beverage to become 2024’s “King of Frozen Capital.”
- Market Ranking: Fourth largest IPO subscription this year, trailing CR Beverage, Carote Ltd, and APT Electronics.
As the seventh-largest premium beauty group in China with a 1.8% market share, MAO GEPING is poised to leverage its listing for growth in the luxury cosmetics market. Trading on the Hong Kong Stock Exchange is set to begin on December 10.
Hong Kong Markets Close Higher
The Hang Seng Index (HSI) rose 305 points (1.6%) to close at 19,865, with the Hang Seng TECH Index climbing 94 points (2.2%). Total market turnover surged to $162.785 billion, reflecting robust investor confidence.
- Constituent Changes: Kuaishou-W and New Oriental-S joined the HSI as blue chips, gaining 1.8% and 2.6%, respectively.
- Sector Gains: PA GoodDoctor spiked 12.7% after excluding a special dividend, fueling speculation about a full acquisition by substantial shareholders.
U.S.: S&P 500 and Nasdaq Hit Record Highs
In the United States, the S&P 500 rose 0.25% to a record 6,090.27, while the tech-heavy Nasdaq surged 0.81% to close at 19,859.77, buoyed by gains in Tesla, Meta Platforms, and Amazon. Conversely, the Dow Jones fell 123 points (0.28%) to settle at 44,642.52.
Key drivers:
- Jobs Data: Nonfarm payrolls increased by 227,000 in November, exceeding estimates, while unemployment rose slightly to 4.2%.
- Monetary Policy: The CME Group’s FedWatch Tool indicates an 85% chance of another interest rate cut in two weeks, supporting equity markets.
Global Business Developments
- Super Micro Computer Avoids Delisting: After tumultuous months involving missed financial filings and a U.S. Department of Justice probe, Nasdaq granted the company until February 25 to comply. Shares jumped 13% in extended trading.
- Workday Joins S&P 500: Human resources software maker Workday surged 9% following news of its inclusion in the index. The company’s market cap has exceeded $70 billion, with expectations of 14% subscription revenue growth by 2026.
- Lululemon Athletica Raises Revenue Outlook: The upscale activewear brand now projects full-year revenue between US$10.45 billion and US$10.49 billion, buoyed by strong international sales despite slower consumer spending in the Americas.
What to Watch
The global markets continue to be shaped by pivotal developments, from ST Engineering’s strategic defense partnerships to MAO GEPING’s record-breaking IPO and the U.S. equity rally. As 2024 nears its end, investors are gearing up for a dynamic 2025 with opportunities across sectors and regions.
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