China Solar Stocks Soar on Installation Curbs Easing

• Chinese solar stocks soar as government hints at easing renewable installation caps. Analysts predict a brighter outlook for the sector with potential curtailment rate increase.

Chinese solar stocks, including Xinyi Solar Holdings Ltd. and Flat Glass Group Co., surged on speculation that the government will ease caps on renewable installation. Analysts from JPMorgan Chase & Co. and Daiwa Securities Group Inc. believe that China may allow a curtailment rate of more than 5% for power generated from solar farms, boosting the outlook for the sector. Currently, the curtailment rate is capped at 5%.

Regulators in China have indicated a more positive stance on managing renewable power utilization and promoting distributed generation deployment. JPMorgan analysts, including Alan Hon, have raised their full-year estimate for China solar installation by 21%. The recent gains in Chinese solar stocks have also been supported by improving industry fundamentals and Xinyi Solar's strong earnings performance.

Will China ease caps on renewable installation, boosting Chinese solar stocks?

• Analysts from JPMorgan Chase & Co. and Daiwa Securities Group Inc. believe that China may allow a curtailment rate of more than 5% for power generated from solar farms, boosting the outlook for the sector.
• Regulators in China have indicated a more positive stance on managing renewable power utilization and promoting distributed generation deployment.
• JPMorgan analysts, including Alan Hon, have raised their full-year estimate for China solar installation by 21%.
• The recent gains in Chinese solar stocks have also been supported by improving industry fundamentals and Xinyi Solar's strong earnings performance.