China has added a further $1.1 billion in subsidies to its solar power sector, more than doubling its support this year, Xinhua reported on Wednesday, sending shares of Chinese solar power companies up sharply in U.S. trading.
Shares of Trina Solar Ltd and Yingli Green Energy Holding Co surged more than 20 percent in morning trading, while those of JA Solar Holdings Co Ltd were up 14 percent. Shares of JinkoSolar Holding Co Ltd and Suntech Power Holdings Co Ltd rose about 10 percent.
The Chinese government has allocated a further 7 billion yuan ($1.1 billion) in subsidies to the solar sector, taking this year’s support to 13 billion yuan, the official Xinhua news agency reported on Wednesday, quoting the finance ministry.
State-run banks in China have already extended billions of dollars of credit to their solar firms, sparking a European Commission investigation into subsidies for Chinese companies. The United States earlier this year imposed steep tariffs on some solar panel imports from China.
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