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…
The following press releases and media reports about Chinese companies were carried on August 8. To view a full article or story, click on the link next to the headline.
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China Fines Milk Powder Makers $110 Mln For Price Fixing (English article)
Former Alibaba Manager Yan Limin Sentenced To 7 Years For Accepting Bribes (Chinese article)
China’s H1 Average Monthly Mobile Data Use Hits 123 MB Per User (English article)
The following press releases and media reports about Chinese companies were carried on July 31. To view a full article or story, click on the link next to the headline.
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Apple (Nasdaq: AAPL) CEO Cook Visits China Telcos As iPhone Sales Drop (Chinese article)
Sina (Nasdaq: SINA) Weibo, Alibaba to Launch Social E-Commerce Platform (English article)
Suntech (NYSE: STP) Adds 2 New Board Members (PRNewswire)
Glaxo (London: GSK) Sacks 100 Chinese Sales Reps in Bribery Case (English article)
Huace Film (Shenzhen: 300133) To Buy Croton Media for 1.65 Bln Yuan (English article)
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…
The following press releases and media reports about Chinese companies were carried on May 16. To view a full article or story, click on the link next to the headline.
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EU warns China It Is Ready To Launch Telecoms Probe (English article)
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 10. To view a full article or story, click on the link next to the headline.
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SAIC: Apple (Nasdaq: AAPL) Apology Not Enough (English article)
Suntech (NYSE: ST) Receives Continued Listing Standards Notice From NYSE (PRNewswire)
Intriguing rumors that billionaire investor Warren Buffett might be eying bankrupt former solar superstar Suntech (NYSE: STP) are breathing new life into embattled solar shares, as traders bet that western investors could help to revive the sector. Such a move would indeed be a major vote of confidence in this tarnished industry, since most observers believe that no private investors would want to bet on this group and a state-led rescue will be necessary to save the shaky sector. But all of that said, I’m quite skeptical that the latest rumors are true, since Buffett isn’t know for investing in problem-plagued companies or sectors.
