Beijing ready to see PV firms fail or merge to tackle overcapacity

China’s central government is to ban protection of solar companies by local governments and encourage mergers and bankruptcies, in a series of new measures aimed at reducing overcapacity in the country’s struggling PV industry.

The measures – agreed on yesterday at a meeting of the executive committee of the State Council (China’s cabinet) – sent solar stocks soaring as investors saw potential benefits to the largest companies in the sector.

Shares in Suntech were still up almost 18% to $1.26 at midday Beijing time today. LDK Solar was up more than 13% to $1.43. Canadian Solar, Yingli, Trina and JA Solar also all surged more than 10% after the news emerged.

Analysts say, however, that it is still too early to assess the real impact Log in to read complete article.

Become a Recharge subscriber!

Or try our free trial.

Order Subscription

Already a member?

Login