China Solar Energy Stocks Soar On DigiTimes Report That China Will Support Local Development

Can you say short squeeze!  Wow, what a move in the China solars today.  Looking at the board to my left, both TSL and STP are up over 50% and some of the other China solars are up anywhere from 20 – 40%.  It’s hard to believe that an article speculating that the China government will be supportive of local solar development would cause a move of this magnitude but when you consider the amount of shorting in these names, the short covering would be massive and a big driver of today’s move.  I personally think it’s a good short term short opportunity if you can find shares to short, but longer term the technicals of many of the solar charts are now considerably bullish.  I’m a buyer on pull backs

The WSJ is reporting that the DigiTimes released an article saying that China hasn’t yet designed a subsidy program but would be open to local solar development. 


The WSJ article seemed to say that solar subsidies were being discussed in China, but a Bloomberg article links to a Chinese Ministry of Finance website (useful if you can read Chinese) that indicates the government will offer $2.93 per watt for solar projects with generating capacity of at least 50 MW.  This would better explain the big pop today.

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