Solar stocks surged on Tuesday, and two Chinese solar companies were among the biggest gainers in New York. They were Daqo New Energy Corp. (NYSE: DQ), which skyrocketed 28% to $56.92 per American depositary share, and JinkoSolar Holding Co. Ltd. (NYSE: JKS), which ended more than 20% higher on the day, at $16.75 per share.
The Motley Fool attributed the solar uptrend to investor optimism on the coronavirus relief stimulus of $2 trillion that may be pumped into the U.S. economy, as announced by House Speaker Nancy Pelosi today. The medium noted SolarEdge (Nasdaq: SEDG), Vivint Solar (NYSE: VSLR), and SunPower (Nasdaq: SPWR) gains. That was after the Solar Energy Industries Association (SEIA) said on Monday that the U.S. solar industry is losing half of its workforce because of the coronavirus and about 550 companies asked Congress for support.
And while that explainer doesn’t explain the gains of the Chinese solar leaders, the overall market of Chinese ADSs seemed to be in recovery mode today after a hurtful, market-wrecking COVID-19 scare has eased in the country. Earlier this month, Beijing released its 2020 subsidy plan for the solar industry, announcing a budget of 1.5 billion yuan for new photovoltaic power projects – which is 50% lower than last year.
Meanwhile, Yingli Green Energy Holding Co. Ltd. (OTC: YGEHY), failed to join the party, ending the day down nearly 12%, at 12 cents per share. The debt-ridden Chinese solar manufacturer has reportedly been in talks of breaking up – lenders may grab its subsidiaries, unless a benefactor steps in. Yingli was delisted from the New York Stock Exchange in July 2018 and has been trading over-the-counter.
ReneSola Ltd. (NYSE: SOL), which claims it is now an American company, also did not get a boost, closing flat today, at $1.03 per share. The company has had a rough run in trading, wavering below $2 for the past year and slipping to just under $1 in mid-March, when it reported lower-than-expected financials for the fourth quarter. Though its revenue more than quadrupled year-over-year, the result of $26.5 million was still a miss on analysts’ expectations.
The company has undergone a serious shift at the year-end after receiving new capital from a principal shareholder. ReneSola moved its headquarters to Stamford, Connecticut, and replaced its top managers. Yumin Liu joined as ReneSola’s new chief executive in December and Ke Chen came onboard as chief financial officer the month earlier.
To top it off, the company revamped its title to “ReneSola Power” with intent, as it explained, to “preserve our brand equity while highlighting our sole focus on power project development.”
Now, ReneSola is focused on the U.S. and European markets, it said in a recent statement.
The Dow rose 11.4% to 20,704.91 points on Tuesday, the Nasdaq Composite jumped 8.1% to 7,417.86, and the S&P 500 got a 9.4% boost to 2,447.33.