Bottom line: China is likely to fall well short of its plan for 35 gigawatts of solar power capacity by the end of next year due to profit-seeking speculation and lack of experience among plant builders and operators.
China struggles to meet solar power targets
I’ve been quite skeptical for a while about China’s ambitious plans to rapidly build up its solar power capacity, arguing that many of the plants being built are more designed to please central planners in Beijing than of real practical use. Now it seems at least one researcher at a major government institute agrees with that view, prompting him to slash his forecasts for new construction this year. That certainly doesn’t look good for big domestic names like Yingli (NYSE: YGE) and Trina (NYSE: TSL), which are hoping to keep their recent positive momentum going with big new demand from plant developers in their home market. Read Full Post…
Lofty targets contained in a new report show that China intends to push ahead with ambitious plans to build up its renewable energy sector. But perhaps the most interesting thing about this new report is word that Beijing finally intends to sharply reduce the inflated state-set fees now paid for solar and wind-produced power, in one of the sharpest indicators that it expects the industry to stop depending on government support and become commercially viable on its own. Such state support through a wide array of measures, which also include export credits and low-interest loans, have become a huge sticking point that has led to a series of trade wars between China and the west. Read Full Post…
Just months after tapping financial markets for nearly $250 million, solar panel maker Trina (NYSE: TSL) has just announced another plan to raise a similar amount as it tries to take advantage of improving sentiment towards its sector. Such fund-raising would have been unthinkable as recently as a year ago, when recovery of the solar panel sector was far from certain following a prolonged downturn. In a relatively positive sign, Trina’s latest fund-raising plan didn’t trigger a major sell-off in its shares, indicating investors are more confident of the company’s and the sector’s future prospects. Read Full Post…
Regular readers will know I’m a bit bearish lately on the solar panel manufacturing sector, largely because I believe its recent rebound is being fueled as much by hype as real business after a prolonged downturn. A new report on some of the sector’s so called “growth engines”, coupled with a separate report on a dispute at one of the top surviving players, are adding fuel to my skepticism that the sector’s recent sharp rebound isn’t really happening. At the very least, the recent reports indicate the rebound isn’t nearly as strong as many are claiming, and solar panel makers and their shares could soon be set for far slower growth than many were hoping for. Read Full Post…
Canadian Solar (Nasdaq: CSIQ) has joined a growing field of Chinese solar panel makers entering the risky business of speculative development in China, with its launch of a new locally-based fund for solar power construction. The move follows the establishment of self-financed vehicles for similar speculative construction by rivals Trina (NYSE: TSL), Yingli (NYSE: YGE) and wind power equipment maker Ming Yang (NYSE: MY), as they try to create more demand for their products. Read Full Post…
Investors were applauding a new announcement by Trina Solar (NYSE: TSL), after it announced a deal that would see it help to finance and build a massive solar power farm in southwest Yunnan province. The deal should indeed help Trina generate big sales for the near-term, as it involves construction of a farm with huge capacity of 300 megawatts of power. But I’m just a bit wary of this kind of development, which will also see Trina pay most of the bills to build the facility. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 3. To view a full article or story, click on the link next to the headline.
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US Business Lobby Says Concerned China Antitrust Probes Unfair (English article)
Ctrip (Nasdaq: CTRP) To Buy Celebrity Century Shop From Royal Caribbean (NYSE: RCL) (PRNewswire)
Trina Solar (NYSE: TSL) Acquires Majority Of Yunnan Metallurgical New Energy (PRNewswire)
KKR Sells Final Stake In China Modern Dairy (HKEx: 1117) For $80 Mln: Source (English article)
Tencent (HKEx: 700) Invests $70 Mln In Online Medical Portal DXY (English article)
The following press releases and media reports about Chinese companies were carried on July 10. To view a full article or story, click on the link next to the headline.
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The following press releases and media reports about Chinese companies were carried on June 28-30. To view a full article or story, click on the link next to the headline.
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China Telecom, Unicom Get 4G FDD-LTE Trial Licences In 16 Cities (English article)
Tencent (HKEx: 700) Invests $736 Mln For 19.9 Pct Of 58.com (NYSE WUBA) (company announcement)
Trina (NSYE: TSL) CEO Elected First President of New China Photovoltaic Industry Assn (PRNewswire)
New Energy Car Sales Rise 10-Fold, Turning Point Seen For BYD (HKEx: 1211) (Chinese article)
Wind power company Ming Yang (NYSE: MY) became China’s latest new energy equipment maker to dip its toe into project finance and development last week, when it announced a new plan for a massive wind farm project in Jiangsu province. Its announcement follows similar moves by many of its peers from the solar sector, and comes as Beijing embarks on a broader plan to clean up China’s air through initiatives like clean energy development. Read Full Post…
The following press releases and media reports about Chinese companies were carried on June 7-9. To view a full article or story, click on the link next to the headline.
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COFCO Meat Brings in KKR, Baring PE, HOPU, Boyu as Strategic Investors (Businesswire)
China Mobile (HKEx: 941) Rolls Out Own-Brand 4G Phone Selling For 999 Yuan (Chinese article)
Apple (Nasdaq: AAPL) Steps Up Campaign To Woo China Developers (English article)
Xiaomi China Sales Surpass Apple (Nasdaq: AAPL) In Q1 (Chinese article)
Trina Solar (NYSE: TSL) Announces Pricing Of Offering Of 8.8 Mln ADSs (PRNewswire)
