The latest signs coming from bankrupt solar panel maker Suntech (NYSE: STP) indicate a Beijing-led overhaul for the struggling sector may not be coming after all, and that local governments and other stakeholders may instead become the main rescue agents for these companies. Reports last year had hinted that Beijing was working on a broad plan to retrench the sector, which was suffering from massive overcapacity. But since then most of the problems at the weakest major player LDK (NYSE: LDK), have been handled by the local government and other stakeholders in its home province of Jiangxi. Now the same appears to be happening at Suntech, which was forced into bankruptcy in March. Read Full Post…
A mini flurry of news from embattled solar panel makers seems to have the same singular message, designed to tell investors that they can survive an industry crisis now entering its third year. Of course the companies that emerge when the crisis finally subsidies could be far different from the ones that went into the crisis, which seems to be the message from LDK (NYSE: LDK) in its latest announcement involving its slow takeover by a Chinese investor. At the other end of the spectrum, the message from Canadian Solar (Nasdaq: CSIQ) is a more upbeat, with the company forecasting a return to profit for all of 2013 as it rolls out a new business model. Finally in the middle there’s Trina (NYSE: TSL), which is simply trying to show investors it’s capable of repaying its debt. Read Full Post…
China’s struggling solar panel makers must are slowly transforming into de facto state-owned enterprises as they take increasing loans from Beijing, with Canadian Solar (Nasdaq: CSIQ) becoming the latest to take a handout from the policy lender China Development Bank (CDB). If Beijing is trying to convince Europe and the US that it’s not unfairly supporting its solar sector, then this certainly isn’t the way to do it. But that said, I doubt that Canadian Solar or many of its peers could get financing to maintain their operations from any true private sector banks right now, as the future remains unclear for most due to their precarious financial positions. Read Full Post…
Solar stocks that were once a darling of bullish investors and green energy enthusiasts have found a new patron in short-term traders, who are feeding on the sector’s high volatility. That’s my main conclusion after seeing a huge surge in the shares of many solar stocks despite any major positive catalyst. This surge is one of the biggest I’ve seen this year, but is certainly not the only time that most solar shares have risen or fallen by more than 7 percent on a single trading day on little or no major news from the sector. Read Full Post…
I’ve been trying to avoid writing about the latest punitive tariffs for Chinese solar panels that look set to come from the European Union this week, since the story has dragged on for more than a year now and the outcome was almost inevitable. But that said, it would be a bit remiss of me not to write at least something on this latest move, which is expected to see European Trade Commissioner Karel De Gucht formally recommend the introduction of anti-dumping tariffs for solar panels supplied from China. (English article) Read Full Post…
Solar panel makers are finally seeing signs that the clouds could be lifting from their embattled sector, sparking a stock rally for their volatile shares. Canadian Solar (Nasdaq: CSIQ) led off the upbeat news, releasing preliminary results that included better-than-expected first-quarter sales and margins. But perhaps more importantly, other reports said the industry is seeing some of its first sustained price increases after more than 2 years of declines. Read Full Post…
Yingli (NYSE: YGE) has become the latest player in China’s struggling solar sector to get a lifeline from Beijing, as an interesting picture starts to emerge of the relative health of the sector’s major players and who is likely to lead a coming consolidation. The list of who gets these lifelines could also reflect the relative importance Beijing places on China’s wide and varied field of solar panel and panel component makers, meaning some of these lifeline recipients could emerge as potential leaders to help consolidate the sector in the months ahead. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 19. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
IBM (NYSE: IBM) In Talks To Sell x86 Server Business To Lenovo (HKEx: 992) (English article)
Yahoo (Nasdaq: YHOO) China To Halt Email Box Service On August 19 (Chinese article)
China Mobile (HKEx: 941) Ends Agreement With FarEastone (Taipei: 4904) (HKEx announcement)
The following press releases and media reports about Chinese companies were carried on April 17. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
China Mobile (HKEx: 941) Restructures Fetion Mobile Messaging Service (Chinese article)
The following press releases and media reports about Chinese companies were carried on April 5. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
China Mobile (HKEx: 941), Vodafone (London: VOD) To Bid For Myanmar License (HKEx announcement)
Nokia (Helsinki: NOK1V) Closes Biggest China Stores (Chinese article)
UBS Was Mystery Lender For Thai Group’s Ping An Buy (HKEx: 2318) – Sources (English article)
New reports that major car maker Dongfeng Motor (HKEx: 489) is bidding to buy a struggling US hybrid car maker are casting a spotlight on China’s emerging role as scavenger for global new energy companies struggling to stay in business. A number of factors are driving this budding trend, led by the fact that many of these Chinese suitors are relatively cash rich and in a good position to provide much-needed funds for cash-starved western new energy firms.
New reports that major car maker Dongfeng Motor (HKEx: 489) is bidding to buy a struggling US hybrid car maker are casting a spotlight on China’s emerging role as scavenger for global new energy companies struggling to stay in business. A number of factors are driving this budding trend, led by the fact that many of these Chinese suitors are relatively cash rich and in a good position to provide much-needed funds for cash-starved western new energy firms.
