CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Sembcorp (U96) to buy 35% of Chinese renewables firm for $230m

By Andreas Ismar

08:43, 3 December 2021

Coastal wind farms in Nantong, China
Coastal wind farms in Nantong, China – Photo: Shutterstock

Singapore’s Sembcorp Industries plans to buy a 35% stake in Chinese renewables firm SDIC New Energy for CNY1.5bn ($230m), giving it access to 1,900 megawatts (MW) portfolio of wind and solar. 

The move followed a CNY3.3bn acquisition of 658MW of wind and solar power assets last month, underscoring Sembcorp’s ambition to reach 10,000MW of renewables capacity by 2025.

“We are pleased to partner SDIC Power, to grow the joint venture together. Along with our recently announced 658MW acquisition, our Group renewables portfolio is expected to reach a gross capacity of 6.1GW,” Sembcorp’s president and chief executive Wong Kim Yin said in a statement.

Deal to conclude in first half of 2022

Under the agreement, the remaining 65% stake in the renewables company will be held by SDIC Power, a subsidiary of state-owned State Development & Investment Corp. The deal is expected to be completed in the first half of 2022.

US100

15,857.10 Price
+0.120% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 22:00 (UTC)
Spread 1.8

Oil - Crude

72.79 Price
-1.130% 1D Chg, %
Long position overnight fee -0.0224%
Short position overnight fee 0.0005%
Overnight fee time 22:00 (UTC)
Spread 0.040

Gold

2,018.88 Price
-0.540% 1D Chg, %
Long position overnight fee -0.0200%
Short position overnight fee 0.0118%
Overnight fee time 22:00 (UTC)
Spread 0.30

XRP/USD

0.63 Price
-0.140% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168

“Sembcorp is keen to build up our renewables portfolio in China, the world’s largest and fastest-growing renewables market. SDIC Power is a top SOE [state-owned enterprise] power company in China, with a strong track record and capabilities in the China power and clean energy industry,” said Sembcorp’s China CEO Alex Tan.

“We believe we have complementing strengths, and we are committed to working alongside SDIC Power to drive further growth in renewables through this joint venture,” Tan added.

Shares in Sembcorp ended 3.1% higher at SGD2 on the Singapore bourse, while Shanghai-listed SDIC Power rose 5.4% to CNY10.58.

Read more: Singapore’s Sembcorp buys renewables power portfolio for 6m

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading