- Yingli advances from record low price in New York trading
- Bloomberg gauge of U.S.-traded Chinese stocks falls 0.4%
Yingli Green Energy Holding Company Ltd. rebounded from a record low after signing its largest ever solar panel supply agreement in China.
The American depositary receipts rose 4.6 percent to 57 cents in New York. Trading volume of 4.4 million shares was about 3.5 times of daily average of the past three months.
The stock regained momentum as the agreement with CFC Group Construction will allow Yingli to supply 170 megawatt solar panels for utility-scale power plants in China’s Hebei province. Yingli had fallen almost 80 percent this year through Wednesday, and the decline accelerated last week as it cut its outlook for shipments and said it will write down the value of its assets, resulting in a “significant” charge in the third quarter.
“This is a pretty substantial deal,” Mahesh Sanganeria, an analyst at RBC Capital Markets, said in a phone interview from San Francisco on Thursday. “Part of the concern was whether the company will survive or not. This gives you another reason to say no, they are in business.”
Other Chinese solar companies also advanced. JinkoSolar Holdings Co. rose 2.3 percent to $23.85, the highest since late July. Trina Solar Ltd. gained 0.1 percent to $9.61. Sky Solar Holdings Ltd. increased 9.5 percent to $6.76.
Yingli, which was the biggest solar panel maker until last year, was among dozens of Chinese companies that flooded into the industry over the past decade. The influx helped push panel prices down more than two-thirds since 2010. It also led to a global oversupply that pushed at least 30 companies in bankruptcy.
China’s gross domestic product expanded 7 percent in each of the first two quarters of this year, compared with a five-year average of 10.2 percent, while Barclays Plc this week cut its forecast for 2016 gross domestic product growth to 6 percent from 6.6 percent.
The Bloomberg gauge of U.S.-traded Chinese stocks fell for the first time in three days, retreating 0.4 percent. The biggest exchange-traded fund tracking mainland Chinese stocks lost 2.4 percent after the Shanghai Composite Index sank in late trading on Thursday.