Wednesday, December 12, 2012

Chinese Solar Stocks Up 12-23% on the Day (LDK; TSL)

From Eric Savitz at Forbes:
China-based solar stocks are soaring Wednesday on news that China’s government has promised to provide $2 billion in subsidies for the country’s solar industry.

China’s Xinhua News Agency yesterday reported that China’s Ministry of Finance has allocated an additional 7 billion yuan – about $1.1 billion – to subsidize production of solar projects. That’s in addition to a previous 6 billion yuan the government committed to solar projects in the first half of 2012, for a total allocation of 13 billion yuan, or more than $2 billion. The story says the funds will be targeted at new projectes intended to generate 5.2 GW of solar power.

Meanwhile, Xinhua also is reporting that many China-based polysilicon producers have suspended production due to weaker solar panel exports. Polysilicon prices have dropped to 110 yuan/kg, down from 230 yuan/kg in early January, the story notes.

Bloomberg points to two other reports that are contributing to the improved sentiment on solar stocks:
  • A Shanghai Securities News story that says official China may double their target for solar installations....