Solar stocks rebound; Deutsche calls Chinese fears overblown

|By:, SA News Editor

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