Solargiga Energy Holdings Ltd. led solar power shares higher in Hong Kong trading after the Chinese government said it would introduce new subsidies to further stimulate use of the cleaner form of energy.
Solar-cell parts maker Solargiga rose as much as 15 percent, the most since July 21. The shares closed 8.5 percent higher at HK$1.91, beating the 0.6 percent decline in the benchmark Hang Seng index. GCL-Poly Poly Energy Holdings Ltd., China’s biggest producer of polysilicon, used in solar cells, gained 2.4 percent. China Solar Energy Holdings Ltd. advanced 3.2 percent.
The government measures came as officials from China and the U.S. meet in Cancun, Mexico, for the latest round of United Nations-led talks aimed at curbing global warming. China will subsidize half of the bidding contract prices for key solar equipment and create 13 industry zones as models for solar- energy applications, Xinhua News Agency reported yesterday.
“These subsidies don’t seem to be huge, but they’ve been viewed as positive news by the market,” Dennis Lam, an analyst at DBS Vickers Hong Kong Ltd., said by telephone. “In the past few weeks solar stocks have been overlooked in Hong Kong, and this news has shined the spotlight on them once again.”
China may increase its capacity to generate electricity from sunlight to 2,000 megawatts by 2011 and to 20,000 megawatts by 2020, Cui Rongqiang, head of the Shanghai Solar Energy Society, said last year. About 80 percent of the nation’s power plants currently run on coal.
Renewable Energy Investment
The country’s solar capacity may reach 600 megawatts by the end of 2010, the National Energy Administration said on Oct. 25. China aims to add at least 1,000 megawatts of installed solar capacity annually after 2012, the Ministry of Finance said in a statement yesterday.
Other Hong Kong-listed solar companies gaining today included China Singyes Solar Technologies Holdings Ltd., which rose 6.9 percent.
Suntech Power Holdings Co., China’s largest solar-panel maker, climbed 7.6 percent in New York trading yesterday, the most since Oct. 11. Yingli Green Energy Holding Co. increased 1.8 percent to close at $10.18. JA Solar Holdings Co. gained 1.9 percent to $7.09.
China attracted $34.5 billion in renewable-energy investments last year, almost double the U.S. figure of $18.6 billion, according to Bloomberg New Energy Finance.
To contact the editor responsible for this story: Amit Prakash at firstname.lastname@example.org.