BEIJING (Reuters) -Chinese solar stocks soared on Tuesday as state media reported that authorities were planning to strengthen controls on solar production capacity, as the industry faces a glut of supply that has driven prices unsustainably low.
The state-run Securities Times reported on Tuesday that relevant authorities may release a notice on strengthening the regulation and control of solar production capacity. The report did not contain further details.
Stocks of top solar manufacturer Trina Solar were trading up 9.48% as of 0410 GMT while JA Solar had risen 9.1%. Shares in Trina are down 1.9% year-to-date and JA Solar stock is down 5.8% over the same period.
China’s solar industry, the world’s largest, is facing significant losses as production capacity has surged to close to double global demand, driving down prices to unsustainable levels.
Most recently, Chinese solar glass producer Haikong Sanxin filed for bankruptcy last week, and industry association data show numerous firms have gone bankrupt, delisted or been acquired in recent years.
(Reporting by Colleen Howe; Editing by Lincoln Feast.)
