Jan. 2 (Bloomberg) -- Yingli Green Energy Holding Co., the biggest solar-panel maker, surged in U.S. trading, extending its 115 percent rally in 2013, after announcing a joint venture with China’s third-largest coal producer.
American depositary receipts of Yingli, based in Baoding, China, jumped 24 percent to $6.28 in New York, the biggest advance since March 2009.
Yingli set up a joint venture with Datong Coal Mine Group to develop and construct solar power plants in China’s northern Shanxi province, according to a statement today. China’s government said June 14 that power grids should give priority access to solar energy while lenders need to offer financing help. It also vowed to encourage mergers and acquisitions among solar companies.
“The assumption people are making is that this means the Chinese government will now allow for Yingli to get financing to build out utilities for the solar projects,” Gordon Johnson, an analyst at Axiom Capital Management in New York, said by phone.
Vishal Shah, a New York-based analyst at Deutsche Bank AG, said the joint venture is “an incremental positive” in an e-mailed report today. “It demonstrates YGE’s leadership position in China. By partnering with a leading state owned enterprise, YGE should be able to significantly expand its downstream business.”
Yingli won an order to provide 233 megawatts of solar panels to projects in Algeria, it said in a statement Dec. 16.
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