The air conditioning paradox is that the same technology that cools air may cause hotter temperatures longer term. Air conditioning accounts for 4 per cent of greenhouse gas emissions. But higher temperatures and increasingly frequent heatwaves around the world mean ever more people are resorting to the systems to keep them cool.
A key beneficiary of this trend has listed in Hong Kong. Shares of Chinese appliance maker Midea Group rose 10 per cent during morning trade on its debut on Tuesday. Midea raised $4bn in the offering, which was already priced at the top end of the marketed range, making the listing the biggest in the city in more than three years. Midea’s listing was eight times oversubscribed by institutional investors, an even higher multiple than that for its allotment for retail investors, reflecting strong demand across investor types.
Midea would have found the public markets less welcoming had it listed five years ago. Sales of household electrical appliances, including air conditioners, were thought to have peaked in 2019. Air conditioner usage rates are high in Asia, including in China where Midea is the largest appliance maker and has long been a household name. Investor expectations for growth in this segment were subdued.