China’s Solar Stocks Soar After Washington Offers $125.5 Million in New Funding

Solar energy players were the big gainers Tuesday morning, while Monday's online education gainers became today's laggards.
Belinda ZhouFeb 12,2020,07:55

Shares in Chinese solar energy companies skyrocketed at a speed of two-digit appreciation Tuesday morning after the U.S. government announced up to $125.5 million research funding earlier this month.

Leading the way in the market Tuesday morning is Wanzhou-based polysilicon manufacturer Daqo New Energy Corp. (NYSE: DQ), which soared 14% to $65.8 per American depositary share.

Daqo was followed by solar modules maker JinkoSolar Holding Co., Ltd. (NYSE: JKS), which jumped 11% to $24.14 per ADS on Tuesday morning. The two gainers signed a two-year agreement of polysilicon supply in September 2019.

Stock price of Hong Kong-based SPI Energy Co., Ltd.(Nasdaq: SPI) increased 11% to $1.37 per ADS in New York on Tuesday morning.

Solar energy sector was fueled by government supports including a $125.5 million funding plan from U.S. Department of Energy, which announced on Feb.5 to advance solar technology research. 

The energy department claimed that these investments directly support the Trump Administration’s all-of-the-above energy strategy. The government energy policy aims to develop and use a combination of nonrenewable and renewable resources to meet energy needs in the U.S., including solar energy.

Through the program, the U.S. will invest $15 million for 8-12 projects in photovoltaics hardware research, $39 million for developing a test site to accelerate the commercialization,  $30 million for systems Integration and so on.

Elon R. Musk, the chief executive officer of California-based Tesla Inc. (Nasdaq: TSLA), tweeted Tuesday that the company will take Solarglass in Tesla’s April company talk in New York.

Other gainers for Tuesday morning included online digital media content site Bilibili Inc. (Nasdaq: BILI), which soared 7% to $27.2 per ADS.

Shares of the lives streaming game planform Huya Inc. (NYSE: HUYA) also gained 4% to $21.17 per ADS, while entertainment service provider iQIYI, Inc. (Nasdaq: IQ) saw its stock price up 5% to $26.65 per ADS Tuesday morning.

The largest losers for the morning in the second trading day this week is Youdao Inc. (NYSE: DAO), the online education arm of NetEase Inc. (Nasdaq: NTES.) Youdao’s stock price plummeted 19% to $23.97 as of Tuesday morning, despite the company is still among few gainers on Coronavirus. The company gained 72% in its stock price since 2020.

Shares in Monday’s gainer Beijing-based China Online Education (NYSE: COE) dropped 17% Tuesday morning to $17.51. Shares in the company soared 78% since 2020.

Xiamen-based Fujian Blue Hat Interactive Entertainment Technology (Nasdaq: BHAT) in the gaming industry suffered a loss of 15% in its stock price Tuesday morning to $1.1 per ADS.

Main indexes in mainland China and Hong Kong had a positive Tuesday. The Shanghai Composite continued to increase 11 points, or 0.39%, to 2,901. The index has been climbing slowly since last Monday, which was 2,746.

The Shenzhen Composite gained 0.37% Monday in China, adding 40 points to 10,769. Hang Seng Index in Hong Kong gained 343 points to 27,584, up 1.26%.

For today’s U.S. benchmarks, the S&P 500 edged up 0.42%, while the Dow Jones almost unchanged and the Nasdaq Composite Index rose 0.63% Tuesday morning.