Chinese solar companies rose the most in seven days in New York on prospects the nation’s urbanization plan will bolster new energy demand in 2013.
The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese shares in New York surged 1.3 percent to 96.92 yesterday, extending gains this year to 7.6 percent. Suntech Power Holdings Co. (STP), the world’s biggest solar-panel maker, jumped to the highest in five months and Yingli Green Energy Holding Co. (YGE) rallied the most in two weeks after saying its product ranked second-best in a test of products by 11 global manufacturers. Baidu Inc. (BIDU) climbed the most in three months as it starts new voice applications and Pactera Technology International Ltd. climbed to a six-week high.
China’s urbanization, which Vice Premier Li Keqiang promoted this month as a driver for economic growth, is expected to spur 40 trillion yuan ($6.4 trillion) of investment by 2020, the Southern Metropolis Daily reported on Dec. 25, citing a draft plan by the nation’s top planning agency. The government confirmed this month a second round of subsidies to more than 100 developers of solar projects as well as feed-in tariffs to support the industry.
“What these programs do in China is creating domestic demand,” Dave Smith, the portfolio manager of the Gabelli Green Fund, said by phone from Purchase, New York yesterday. “It’s positive for stock prices in the short term because they give a sense of confidence that these companies will be generating higher volumes.”
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