Business
Chinese Solar Stocks Soar amid Rumours of Beijing’s Intervention to Curb Oversupply and Price War in the Sector
Shares in Chinese solar companies surge amid speculation that Beijing will curb overproduction and price competition. If these measures are put into place, they could terminate the ongoing price rivalry and weed out companies that produce inferior equipment, according to an analyst.
Shares in numerous Chinese solar firms experienced a significant increase on Wednesday, following speculation that Beijing is set to introduce fresh regulations for solar photovoltaic (PV) production in an effort to control excess supply and a pricing battle within the industry.
Xinyi Solar saw a 12% increase to HK$3.80, while GCL Technology Holdings experienced a 25% surge to HK$1.50 in Hong Kong. Meanwhile, in mainland China, Longi Green Energy Technology rose by 6.5% to 19.50 yuan, and Sungrow Power Supply had a 4.7% gain, reaching 98.40 yuan.
Gossip circulating on social media platforms on Wednesday afternoon suggested that the Ministry of Industry and Information Technology (MIIT), the industry watchdog, is considering introducing limits on energy use for photovoltaic production next month.
There were additional speculations suggesting that MIIT might enforce more stringent regulations for the use of production capacity.
"If these facts hold true, it will be a positive indication for the solar PV sector, as these strategies would halt the ongoing drop in solar PV costs," stated Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.
Gossip has been circulating following recent commitments from China's solar panel and wind turbine producers to halt price battles in the two renewable energy sectors. Both sectors are grappling with excessive production capacity and aggressive price rivalry as manufacturers vie for a larger slice of the market.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.