Trina Leads Solar Jump on Yingli Outlook: China Overnight
Chinese solar stocks climbed in New York after Yingli Green Energy Holding Co. (YGE) said it expects panel sales to surge this year on the back of rising domestic demand.
Trina Solar Ltd. (TSL), China’s third-largest maker of solar panels, drove gains in the Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese shares in the U.S., which added 0.1 percent to 91.53 by 12:56 p.m. in New York, after falling in the previous two days. Yingli, whose chief executive officer said will become the world’s biggest panel supplier in 2012, gained the most in eight weeks. Youku Tudou Inc. (YOKU) sank to the lowest since Sept. 6 as analysts predict the online video company will post an eighth quarterly loss in results due today.
Chinese solar companies have reported losses since the second quarter of 2011 as the industry was plagued by overcapacity and as Europe’s debt crisis prompted governments to trim solar energy manufacturers. Yingli said yesterday on Nov. 27 that it will provide modules to a solar project in southern California under its biggest supply contract, before third- quarter results showed losses were worse what analysts had forecast while revenue beat projections.
“Trina and Yingli appear to be the biggest survivors because they have the lowest costs than some other brands in the industry,” Aaron Chew, a senior analyst at Maxim Group LLC in New York, said by phone yesterday. “These two still have several hundred-million dollars of cash, and even though they are burning a lot of capital, they have years before they have to face the music.”
The iShares FTSE China 25 Index Fund, the biggest Chinese exchange-traded fund in the U.S., retreated for a third day, dropping 0.4 percent to $36.72. The Standard & Poor’s 500 Index increased 0.4 percent to 1,403.92 after comments by Speaker of the House John Boehner and President Barack Obama fueled optimism an agreement can be reached in budget talks.
China’s Shanghai Composite (SHCOMP) index of domestic shares slipped 0.9 percent to 1,973.52, the lowest level since Jan. 16, 2009, while Hong Kong’s Hang Seng China Enterprises Index (HSCEI) fell 1.2 percent to 10,399.16 in the steepest decline since Nov. 15.
