- A day after solar stocks sold off amid concerns about a possible 4GW cap on 2014 Chinese utility-scale solar installations, shares are bouncing with the help of a Deutsche note that calls such fears overblown, and states checks indicate the Chinese government has become "even more serious" about achieving its 35GW 2015 cumulative installation target.
- In spite of utility cap worries, Deutsche's checks suggest "the policy outlook for large [solar] projects in China has improved since mid-November," with approval times having been cut. Moreover, provinces haven't shown any sign of being issued targets or quotas related to an installation cap.
- The firm also thinks a new Chinese solar subsidy program (focused on self-consumption) that kicks in next month will offset the expiration of China's Golden Sun subsidy program, and that a more streamlined incentive process will fuel installation growth.
- Deutsche is reiterating Buys on Yingli (YGE +4.3%) and Trina (TSL +5.9%). Also up: FSLR +2.6%. HSOL +9.7%. CSIQ +5.9%. JKS +6.1%. SOL +3.7%.
- Solar ETFs: KWT, TAN