Chinese solar stocks soared on Monday as investors expected the government to ease limits on solar power transmission, according to Bloomberg.
Shares of Xinyi Solar Holdings Ltd. and Flat Glass Group Co., two leading solar glass manufacturers, increased by more than 8 per cent in Hong Kong. This is based on rumours that China will accept more wasted power from solar and other green sources. Analysts from JPMorgan Chase & Co. and Daiwa Securities Group Inc. said this would make solar projects more attractive.
Analysts said China might allow more solar power to be sent to the grid, which would boost the profitability and growth of solar projects.
JPMorgan analysts increased their estimate for China’s solar installation by 21 per cent .
Chinese solar stocks have been on a tear in recent weeks, as the sector has benefited from rising global demand, falling production costs, and technological innovation.
Xinyi Solar, for instance, reported a 50 per cent increase in net profit for 2023, and said it expected to double its annual production capacity by 2025.
