China Solar Stocks Are Surging After Xi’s 2060 Carbon Pledge
China’s massive renewable energy industry has seen shares soar since President Xi Jinping announced the country aims to go carbon neutral by 2060.
That surge continued Friday as mainland-listed solar giants like Longi Green Energy Technology Co. and Tongwei Co. jumped in their first trading after a week-long holiday during which some peers in Hong Kong posted gains of more than 20%.
The furious rally illustrates the growth potential investors see in Beijing’s effort to go from the world’s biggest polluter to carbon neutrality. The shift could require anywhere from $5 trillion to $15 trillion in investment, much of it in wind- and solar-power generation.
Read more about Asian renewable stocks’ great performance this year.
The premium that mainland stocks, known as A-shares, normally have over Hong Kong counterparts has narrowed during the trading holiday, said Dennis Ip, an analyst with Daiwa Capital Markets. “So it’s very likely that A-shares of solar companies are going to have very good performances” on Friday.
China is home to the most solar panels and wind turbines in the world, and is also the leading manufacturer of both. Its companies are technology leaders in photovoltaic panels, which are seen as the leading source of future power, according to BloombergNEF.
Government officials are already considering proposals to accelerate adoption of clean energy, which would boost installations of solar and wind, in its next five-year plan, which begins in 2021.Read More..
Source : bloombergquint
