China's cleantech stocks jump as investors bet on US policy shift
FXI•China's cleantech stocks rose as investors bet a Democratic-controlled US Congress would increase support for clean energy. Shanghai's STAR new energy index gained 6.46%, while Sungrow Power rose 7.45%, Trina Solar 5.51%, Daqo New Energy 9.87% and CATL 5.17%.
1. Stocks rally
China's cleantech stocks surged as investors anticipated that a Democratic-controlled US Congress could revive renewable energy tax credits and increase scrutiny of efforts to roll back emissions regulations. Shanghai's STAR new energy index rose 6.46% in morning trade.
2. Tariffs and outlook
Sungrow Power gained 7.45%, Trina Solar rose 5.51%, Daqo New Energy jumped 9.87% and CATL gained 5.17%. The US maintains 50% tariffs on Chinese solar products and 25% tariffs on Chinese grid batteries. Analysts said the rally was driven more by sentiment than concrete proposals, and cautioned that increased US support for renewables may not mean substantially easier access for Chinese exporters.
