Yingli Green Energy Holding Co. (YGE) led declines in Chinese solar makers in New York before reporting second-quarter figures that may show a fourth straight quarter of losses. Sohu.com Inc. (SOHU) rose after Citron Research said the Internet company is undervalued.
The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. slid 0.2 percent to 89.68 as of 12:23 p.m. yesterday. Yingli sank the most in three weeks as analysts forecast the company’s losses may have widened from the previous quarter. LDK Solar Co. was poised for the steepest retreat since Aug. 1. Sohu was headed for an eight-week high after Citron said yesterday the company is worth 50 percent or more above its current price.
Yingli, the world’s sixth-largest silicon-based solar module producer, may report Aug. 29 a net loss of $56 million in for the April-June period, from a profit a year ago and a loss of $45 million in the prior quarter, the average estimate of 10 analysts compiled by Bloomberg showed. Chinese solar companies started to report losses in the second quarter of 2011 as the industry has been plagued by overcapacity and as Europe’s debt crisis prompts governments to trim solar energy subsidies.
“Overcapacity in the solar industry hasn’t shown much improvement and there has been little consolidation,” Joshua Giordano, a managing director at Energistics LLC., which advices trading in energy companies, said by phone yesterday from New York. “Chinese solar companies will continue to lose money within the next 12 months. They are mostly insolvent without credit lines from the government.”
The iShares FTSE China 25 Index Fund, the biggest Chinese exchange-traded fund in the U.S., slumped 0.6 percent to $34.01, extending its loss to an eighth day. The Standard & Poor’s 500 Index of the biggest U.S. shares added 0.4 percent to 1,407.78.
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