China Growth Stocks

[Florinda]

A worry for Chinese coal plays?

"China Ignores the Cost of Moving Away from Coal" by Toby Shute 12/29/09

"Perhaps you've heard the argument that the world needs to move from coal to renewables at any cost. China now appears to be applying this idea quite literally."

"In an amendment to a 2006 renewable energy law, the Chinese government has mandated that state-owned electric grid companies buy all of the renewable energy produced by generators, regardless of the price."

"Wow. And I thought U.S. refiners were getting a rough deal with the pending U.S. climate legislation. I would not want to own Huaneng Power (NYSE: HNP) in a world where the price for electric generation is suddenly irrelevant. No wonder the company trades near a multi-year low."

"Meanwhile, A-Power Energy Generation Systems (Nasdaq: APWR) and other wind players are likely to have a field day. Wind accounts for just 0.4% of China's power supply at present, but the country is doubling this capacity every year, like clockwork...."

http://seekingalpha.com/article/180139-china-ignores-the-cost-of-moving-away-from-coal?source=email