Trina Solar Ltd. led gains in Chinese renewable energy makers in New York on prospects of increased demand for its products in Asia.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. slid 0.1 percent to 95.73 yesterday as 29 companies rose and 26 fell. Trina, the third-largest solar panel producer, jumped 5.9 percent, and Yingli Green Energy Holding Co. rallied the most in a week. Shanda Games Ltd. tumbled 11 percent after Morgan Stanley reduced its rating. Semiconductor Manufacturing International Corp. traded at the biggest premium to its Hong Kong stock in a week.
JA Solar Holdings Co., a Shanghai-based maker of cells, said yesterday that second-quarter shipments beat its previous forecast, driven by orders from China and Japan. Spot prices for Polysilicon, a raw material for making solar products, has increased to to a four-month high in the past week, signaling a rebound after excess production drove panel prices down 61 percent since the start of 2011.
The solar rally is a “recognition that pricing has bottomed and is turning up in most markets,” David Smith, the manager of the Gabelli Green Fund at Gamco Investors Inc., said by e-mail from Purchase, New York. “There is clear upside to JA Solar’s 2013 sales target, and the same is likely for Trina and Yingli. As margins improve, the recognition is that the worst has passed.”
The iShares China Large-Cap ETF, the largest Chinese exchange-traded fund in the U.S., rose 0.3 percent to $35.11 for the biggest rally in a week. The Standard & Poor’s 500 Index added 0.2 percent as data showed the U.S. economy expanded at a faster pace in the second quarter and concerns over Syria eased.
American depositary receipts of Trina rallied to $9.40 in New York, rising for a second day. Baoding-based Yingli, the world’s biggest solar-panel maker, climbed 3.2 percent to $4.20, gaining the most since Aug. 21.
JA Solar’s second-quarter shipments of solar modules and cells exceeded the company’s previous forecast by 8 percent, the company said in a statement yesterday.
Japan was a “key revenue” driver for JA Solar and the company will benefit from further growth in the Chinese market, where the government raised its installation target to 35 gigawatts by 2015, Chief Executive Officer Baofang Jin said, according to JA Solar’s statement.
Semiconductor Manufacturing, a circuit foundry based in Shanghai, rallied 2 percent to $3.63. Its ADRs, each representing 50 underlying shares in the company, traded 2.4 percent above its Hong Kong stock, the widest premium since Aug. 22. Sanford C Bernstein & Co. raised its recommendation to the equivalent of hold from the equivalent of sell yesterday. The shares are down 20 percent from this year’s high in May.
Shanda, an online game operator based in Shanghai, tumbled to $4.07, the biggest slump in a month. Morgan Stanley cut its recommendation to an equivalent of hold yesterday after the company said third-quarter revenue will rise as much as 4 percent from the previous three months.
The company’s outlook is “soft,” while its the potential of mobile game platform is yet to be proved, Nick Ning, a Shanghai-based analyst at 86Research Ltd. wrote in a note to clients yesterday.
The Hang Seng China Enterprises Index advanced 0.9 percent to 9,850.72. The Shanghai Composite Index slipped 0.2 percent to 2,097.23, slumping for a second day.