11 December 2018

Solar plays come to life on extra local subsidies

The sun has shone on solar plays since the Shanghai Securities News reported Wednesday that lower-level mainland governments plan to launch their own subsidy schemes on top of the national scheme announced last year.

Shanghai, for example, is expected to pay 0.25 yuan per kilowatt-hour for power produced by solar installations while Zhejiang is likely to announce a 0.1 yuan per kilowatt-hour plan. That’s in addition to the 0.42 yuan per kilowatt-hour national subsidy that the National Development and Reform Commission announced in August.

Comtec Solar Systems (00712.HK) rose 12 percent to be the industry’s best performer. GCL-Poly Energy (03800.HK) and Xinyi Solar (00968.HK) both jumped over 6 percent, while China Singyes Solar Technologies (00750.HK) also gained more than 3 percent.

But the Hong Kong benchmark Hang Seng Index was dragged down by China lenders and insurers. The index shed 209 points, or 0.91 percent, to end at 22,787 points. The Hang Seng China Enterprises Index, the main gauge for H shares, gave up 1.71 percent to 10,152; while the Shanghai Composite Index ended the day 0.82 percent lower at 2,027 points.

Blue chips were down in general for the day. Lenders Industrial and Commercial Bank of China (01398.HK), China Construction Bank (00939.HK) and Bank of China (03988.HK) fell between 1.4 percent and 2 percent. China Life Insurance (02628.HK) shed near 2.7 percent by the market’s close.

Mobile gaming plays put in mixed performances. IGG Inc. (08002.HK) surged 29 percent after adding over 30 percent in previous session. Boyaa Interactive International (00434.HK) rose 9.1 percent to a record high while rival Forgame Holdings (00484.HK) tumbled 6.8 percent.

– Contact the writer at [email protected]



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