China's Solar Stocks Soar After Washington Offers $125.5 Million in New Funding
Shares in Chinese solar energy companies skyrocketed, appreciating by double digits Tuesday morning after the U.S. government announced up to $125.5 million in industry research funding last week.
Leading the way in the market 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 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 support including a $125.5 million funding plan from U.S. Department of Energy to advance solar technology research, which was announced on Feb.5.
The energy department claimed that these investments directly support the Trump Administration's "all-of-the-above" energy strategy. The policy aims to develop and utilize a combination of nonrenewable and renewable resources to meet energy needs in the U.S., including solar energy. This was good news to China's big solar players, most of which have operations in the U.S.
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 and $30 million for systems Integration, among other investments.
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 biggest 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 being among the few gainers sicne the coronavirus. The company gained 72% in its stock price since the first of the year.
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), a gaming company, suffered a loss of 15% in its stock price Tuesday morning, falling 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. The Hang Seng Index in Hong Kong gained 343 points to 27,584, up 1.26%.
U.S. benchmarks as of Tuesday morning trading saw the S&P 500 edging up 0.42%, while the Dow Jones traded sideways while the Nasdaq rose 0.63%.
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