July 16 (Bloomberg) -- Solar stocks led by China Singyes Solar Technologies Holdings Ltd. extended gains in Hong Kong trading after the Chinese government announced plans to boost capacity.
Singyes, a panel producer and project developer, jumped as much as 14 percent to HK$9.60 and traded at HK$8.99 as of 10:20 a.m. local time local time. GCL-Poly Energy Holdings Ltd., the biggest maker of polysilicon used to make solar panels, rose by as much as 8.9 percent to HK$1.96.
China, the world’s biggest maker of solar panels, plans to add 10 gigawatts of solar power a year during the next three years, according to a statement from the State Council posted on the government’s website yesterday. The plan would increase the nation’s solar installed capacity fivefold to more than 35 gigawatts by 2015.
“I think they’re going to sustain these high levels of growth and soak up some of the excess capacity,” Angelo Zino, an analyst at Standard & Poor’s in New York, said in an interview.
Oversupply led to a 20 percent plunge in the average price of solar panels last year, according to data compiled by Bloomberg.
China will provide credit support to profitable photovoltaic manufacturers and encourage restructuring and overseas investment, according to yesterday’s statement. The period that the government will consider to measure profitability wasn’t specified.
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