China's Wind Companies Decline on Pessimism Caused by Idle PowerBloomberg News
Wind-related stocks led by Xinjiang Goldwind Science & Technology Co. and Concord New Energy Group Ltd. extended losses in Hong Kong trading as analysts sounded a warning about idled capacity in China.
Goldwind, China’s largest wind turbine maker, declined as much as 14 percent to HK$11.36 and traded at HK$11.52 as of 3:28 p.m. local time. Concord, a Chinese wind-farm operator, fell as much as 11 percent, while China High Speed Transmission Equipment Group Co., another wind-power equipment maker, lost 9 percent.
An increase in idled capacity continues to dog the outlook for the wind-power industry, said Jerry Weng, a Shanghai-based analyst at KGI Securities Co.
Record installations ahead of planned cuts in wind power prices may exacerbate the situation next year, he said.
The wind power output of the nation’s biggest project developer, China Longyuan Power Group Corp Ltd., plunged 7.5 percent in November, the largest decline in 14 months, according to Bloomberg Intelligence.
"That may indicate increased power curtailment in northern China following rapid capacity expansion in the first half of 2015," BI said in a Dec. 9. note.
— With assistance by Feifei Shen