China Solar Manufacturers Jump as Biden Win Seen Boosting Demand
China Solar Manufacturers Jump as Biden Win Seen Boosting Demand
(Bloomberg) -- Shares in the Chinese companies that dominate production of solar panels rose after Joe Biden’s victory increased the likelihood that the world’s top economy will accelerate its move toward clean energy.
During the campaign, Biden said he’s aiming to eliminate carbon emissions from the U.S. power sector by 2035. Doing so will require a ramp-up in new solar installations, which should lift global demand and support the sector, said Dennis Ip, an analyst with Daiwa Capital Markets in Hong Kong.
“If you look over the past five years, U.S. solar installations were just stable as the Trump administration focused on fossil fuels,” Ip said in a phone interview. “A Biden victory will lead to a direct increase.”
Daiwa forecasts U.S. annual installations rising from about 12 gigawatts to 26 gigawatts over the next five years, which would push global demand growth to almost 20% a year, compared with 17.5% if U.S. policy remained unchanged.
Longi Green Energy Technology Co., the world’s largest solar company by market capitalization, rose 1.2% in Shanghai on Monday. Polysilicon maker GCL-Poly Energy Holdings Ltd. added 6.6% in Hong Kong. The gains also extended to wind power, with turbine manufacturer Xinjiang Goldwind Science & Technology Co. climbing 7.3%.
One exception was JA Solar Technology Co., which dropped by the 10% daily limit in Shenzhen after announcing its chairman was being investigated by Chinese authorities.
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