Bottom line: A widening investigation into violations of an anti-dumping solar panel settlement between China and the EU is likely to result in punitive sanctions, dealing a blow to the Chinese panel makers.
Solar settlement unravels
What started as some quiet rumblings earlier this week is quickly brewing into a major storm, with word that a landmark settlement between the EU and China a year ago to resolve an anti-dumping dispute over solar panels is quickly unraveling. In this case it’s probably more accurate to say the settlement was between the EU and actual Chinese solar panel makers, rather than an agreement between governments. That’s an important distinction, since Chinese companies are often far more likely to try to undermine such agreements by exploiting loopholes, unlike central governments that are usually a bit more trustworthy. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 13. To view a full article or story, click on the link next to the headline.
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Online Ratings and Group Buy Site Dianping Wins $850 Mln Series E – Sources (English article)
Tencent (HKEx: 700) Opens TMall Digital Store, Still Inaccessible On WeChat (Chinese article)
ReneSola (NYSE: SOL) Looks To Exit EU Solar Settlement Agreement (Chinese article)
Smartisan Enters Low-End Smartphones With 1,000 Yuan Model – Source (Chinese article)
Homeinns (Nasdaq: HMIN) Reports Q4 And Full Year 2014 Financial Results (PRNewswire)
Bottom line: The EU is likely to resolve its latest dispute with Chinese solar firms over implementation of a year-old pricing agreement, but the clash will undermine trust and hints at future conflict over the issue.
Canadian Solar denies violating EU agreement
After several months of relative quiet, Chinese solar panel makers are back in the headlines this week with another looming trade dispute in Europe. This particular story, and much of the industry’s woes over the last 2 years, stems from broader western allegations of unfair government support for Chinese panel makers. In this case China and the EU signed a deal a year ago to resolve their dispute, but now the EU is accusing several Chinese firms of violating the deal.
The EU had previously threatened to levy punitive tariffs on Chinese panel makers, saying they received unfair support through policies like cheap loans from state-run banks and low-cost land from local governments. Washington made similar claims and ultimately did impose punitive tariffs, but the EU took a more conciliatory approach and reached a settlement after the intervention of several top government leaders. Read Full Post…
Bottom line: Emerging details are giving more credibility to LeTV’s new electric car initiative, while solar shares look oversold on plunging oil prices and should rebound later this year.
LeTV soars on new EV details
Mixed signals are coming from China’s green energy sector, where a newly turbocharged LeTV (Shenzhen: 300104) is getting a lift on details about its new electric car initiative that includes ties to a technology supplier of US superstar Tesla (Nasdaq: TSLA). But solar panel makers are moving in the opposite direction, with shares of several reaching or approaching all-time lows over concerns that demand will plummet due to low oi prices. I seldom give direct stock buying advice, but in this case I honestly don’t understand the reasons for this sudden plunge and would strongly consider buying some of these shares that seem quite undervalued right now. Read Full Post…
Bottom line: The recent plunge in solar stocks is the result of panic selling due to falling oil prices, meaning the shares could rebound sharply once the sell-off subsides.
Falling oil prices cast cloud over solar stocks
US investors were showing signs of new energy indigestion in the shortened trading day after Thanksgiving, dumping stocks of all the major solar panel makers in a messy post-holiday sell-off. With no major news from any of the companies, the driving force behind the sell-off appears to be the recent plunge in oil prices, which hit new 4 years lows late last week after OPEC declined to cut its daily output quotas.
Investors appear to be worrying that falling oil prices will dampen enthusiasm for building new solar plants, since lower oil prices mean solar power will be less competitive with more traditional power sources derived from fossil fuels. The only problem with that logic is that solar power was never competitive with fossil fuels to begin with, meaning solar stocks could be getting punished for no good reason. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 27. To view a full article or story, click on the link next to the headline.
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Wal-Mart (NYSE: WMT) Dismisses 30 China Executives In Restructuring (English article)
Shanda Interactive Sells Controlling Interest In Shanda Games (Nasdaq: GAME) (PRNewswire)
China Widens ‘Tax-Evasion’ Net Amid Microsoft (Nasdaq: MSFT) Case (English article)
The following press releases and media reports about Chinese companies were carried on August 13. To view a full article or story, click on the link next to the headline.
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China Probes Threaten to Squeeze Foreign Profits (English article)
Shanghai GM (NYSE: GM) Admits To Coming Under Anti-Monopoly Investigation (Chinese article)
Just a day after the solar panel sector was hit by a new negative trade ruling from the US, Trina Solar (NYSE: TSL) gave its investors another unwanted surprise with word that it is preparing to raise more than $200 million through a combination of new stock and bond offerings. Trina joins a growing list of solar panel makers that are looking to western capital markets as confidence returns to the sector following a prolonged downturn dating back to early 2011. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 25. To view a full article or story, click on the link next to the headline.
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JPMorgan (NYSE: JPM) China Investment Bank CEO Quits Over Hiring Scandal (Chinese article)
Disney (NYSE: DIS) Unveils Retail Strategy For Shanghai Park, Forms JV (Chinese article)
Ctrip (Nasdaq: CTRP) Hit By Security Loophole (English article)
China Fines NU Skin (NYSE: NUS), Eyes Tighter Direct-Sales Control (English article)
ReneSola (NYSE: SOL) Announces Q4 And Full Year 2013 Results (PRNewswire)
More bright signs are emerging in the solar panel sector with word of 2 major new tie-ups, one involving ReneSola (NYSE: SOL) in Japan and the other Yingli (NYSE: YGE) in China. In the first, ReneSola has signed a massive deal to sell panels to a Japanese solar power plant developer. The latter case looks similar, with Yingli in its own deal for a major joint venture to co-develop new solar power plants with one of China’s top nuclear power companies. Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 7. To view a full article or story, click on the link next to the headline.
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WhiteWave Foods (NYSE: WWAV) To Form JV With Mengniu (HKEx: 2319) (Businesswire)
Unicom (HKEx: 762) Vice President Li Gang Resigns To Join VNO Licensee (Chinese article)
