Sector Update: Chinese-based Solar Companies Show Big Advance on New Government VAT Rebate


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Shares of solar energy companies based in China are up between 10% - 43% following Sunday's news the Chinese government will offer local solar manufacturers a 50% value-added tax rebate for sales taking place from October 2013 to December 2015. This action is a clear sign of China's support of the country's solar industry which is facing overcapacity and weak demand challenges.

Seeing the greatest gains on the news are shares of China Sunenergy Co Ltd ( CSUN ) up 55% at $6.54 per share after hitting a 52-week high of $6.90 per share. LDK Solar Co Ltd ( LDK ) is up 25% at $1.86 per share, and Suntech Power Holdings Co Ltd ( STP ) is up 18% at $1.59 per share. Also advancing are shares of Hanwha Solarone Co Ltd ( HSOL ) up 13% at $4.72 after hitting a 52-week high of $4.78 per share.

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This article appears in: Investing , Commodities
More Headlines for: CSUN , HSOL , LDK , STP

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