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๐Ÿงฌ China Biotech Declines 30%. 55M+ VC Funding.

Impact Capital Markets #102 looks at our China Biotech Stock Index, major impact deals, M&A, and upcoming economic releases.

Hallo ๐Ÿฆ

๐Ÿ“‰ Today's Global Economic Update: In May 2024, Germany's Ifo Business Climate indicator held steady at 89.3, matching April's figure and falling short of expectations. The failure to meet expectations suggests, a potential slowdown in the economic recovery.

๐Ÿฉบ Deal of the Day: Spectrum. Life, an Irish mental health tech company, raised $18.4M for digital health initiatives.

What's New?

๐Ÿงฌ China Biotech. China biotech declines 30%
๐Ÿ’ฐ Funding. Mental health, fleet management, green logistics + more
๐Ÿ’ผ M&A. Healthcare services and power management
๐Ÿ“… Economics. US GDP, Euro area inflation, balance of trade + more

๐Ÿงฌ China Biotech Declines 30%

The China Biotech index has been experiencing a persistent downward trend, currently down 30% from a year ago. This decline in Chinese biotech companies, exemplified by firms like WuXi AppTec Co ($17B MCap) is largely attributed to the US extending its crackdown on Chinese firms to the biotechnology sector. A proposed bill prohibits federally funded medical providers from contracting with certain Chinese biotech firms due to national security concerns. Moreover, there has been a substantial reduction in funding for biotech, especially from US venture capital funds, which have slashed investment in Chinese biotech groups by over half in the past two years. Additionally, growth is slowing alongside the fall in demand for COVID-19 vaccines.

The financial impact of these developments is evident in the stock market, with significant drops in share prices. This decline in trend has been identified in key stocks in the index, such as Imeik Technology Development Co Ltd ($9B MCap), Shanghai Fosun Pharmaceutical Co Ltd. ($8B MCap), and China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. ($8.5B MCap), which showed a year-over-year decline of 39%, 37%, and 9%, respectively. The trend reflects the challenges the sector is facing and indicates investors are bracing for a difficult period ahead.

๐Ÿ’ฐ Funding

๐Ÿฉบ Spectrum.Life, an Irish mental health tech company, raised $18.4M from Act Venture Capital for digital health initiatives.

๐Ÿš— Zypp Electric, an Indian fleet management startup, raised a $14M Series C from ENEOS to expand operations.

๐Ÿšš Shipzero, a green logistics startup, raised an $8.7M Series A from ETF Partners to expand its transport emissions management platform.

๐Ÿ”‹ Turno, an Indian commercial EV distribution and financing company, raised $5.5M to meet working capital needs.

โšก Delta Green, a Czech energy startup, raised $2.4M to integrate renewable resources into the grid and balance it with a virtual battery.

๐Ÿ’ผ M&A

๐Ÿฅ The New Frontier Group, a Chinese private healthcare service provider, acquired the Hong Kong Integrated Oncology Centre, a cancer treatment center.

โšก Eaton, an Irish intelligent power management company acquired Exertherm, a UK-based thermal monitoring solutions provider.

๐Ÿ“… Economic Calendar

US GDP, Euro Area Inflation, Balance of Trade + More

Wednesday, May 29th 2024

๐Ÿ‡ฏ๐Ÿ‡ต Japan Consumer Confidence Index, May
๐Ÿ‡ฉ๐Ÿ‡ช Germany GfK Consumer Confidence, June
๐Ÿ‡ฉ๐Ÿ‡ช Germany Inflation Data Preliminary, May

Thursday, May 30th 2024

๐Ÿ‡บ๐Ÿ‡ธ US GDP Growth Data, Q1
๐Ÿ‡จ๐Ÿ‡ณ China NBS Manufacturing PMI, May

Friday, May 31st 2024

๐Ÿ‡ซ๐Ÿ‡ท France Inflation Data Preliminary, May
๐Ÿ‡ช๐Ÿ‡ฆ Euro Area Inflation Data (Flash), May
๐Ÿ‡ฎ๐Ÿ‡น Italy Inflation Data Preliminary, May
๐Ÿ‡ฎ๐Ÿ‡ณ India GDP Growth Data, Q1
๐Ÿ‡จ๐Ÿ‡ฆ Canada GDP Growth Data, Q1
๐Ÿ‡บ๐Ÿ‡ธ US Core PCE Price Index, April
๐Ÿ‡บ๐Ÿ‡ธ US Personal Income & Spending, April

Monday, June 3rd 2024

๐Ÿ‡บ๐Ÿ‡ธ US ISM Manufacturing PMI, May

Tuesday, June 4th 2024

๐Ÿ‡บ๐Ÿ‡ธ US JOLTs Job Openings, April
๐Ÿ‡ฆ๐Ÿ‡บ Australia GDP Growth Data, Q1

Wednesday, June 5th 2024

๐Ÿ‡จ๐Ÿ‡ฆ Canada BoC Interest Rate Decision
๐Ÿ‡บ๐Ÿ‡ธ US ISM Services PMI, May
๐Ÿ‡ฆ๐Ÿ‡บ Australia Balance of Trade Data, April

Thursday, June 6th 2024

๐Ÿ‡ช๐Ÿ‡ฆ Euro Area Deposit Facility Data
๐Ÿ‡ช๐Ÿ‡ฆ Euro Area ECB Interest Rate Decision
๐Ÿ‡ช๐Ÿ‡ฆ Euro Area ECB Press Conference
๐Ÿ‡จ๐Ÿ‡ฆ Canada Ivey PMI s.a, May
๐Ÿ‡จ๐Ÿ‡ณ China Balance of Trade Data, May

Friday, June 7th 2024

๐Ÿ‡ฉ๐Ÿ‡ช Germany Balance of Trade Data, April
๐Ÿ‡จ๐Ÿ‡ฆ Canada Balance of Trade Data, April
๐Ÿ‡จ๐Ÿ‡ฆ Canada Employment Data, May
๐Ÿ‡บ๐Ÿ‡ธ US Employment Data, May

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