21 August 2019

Policy push shines light on solar plays

Hong Kong’s benchmark Hang Seng Index (HSI) ended a volatile trading session Wednesday, the first day of the National People’s Congress’s annual session. 

The HSI climbed as much as 181 points in the morning but soon lost steam, ending the day down 77 points, or 0.34 percent at 22,579. The Hang Seng China Enterprises Index, the main gauge for H shares, lost 1.17 percent to finish at 9,661. The Shanghai Composite Index also gave up 0.89 percent to close at 2,053 points.

Premier Li Keqiang {李克強} used his speech to the congress to declare war on pollution, a direction market observers say will continue to favor the solar industry. Most solar plays made major gains during the session. China Singyes Solar Technologies (00750.HK) shot up 11.8 percent, Comtec Solar Systems (00712.HK) gained 6 percent and GCL-Poly Energy (03800.HK) closed 2.5 percent higher.

Chinese lenders were weaker after Shanghai Chaori Solar Energy Science and Technology said it will probably default on its debt this week. The firm said it may not be able to make an 89.8 million yuan (US$14.6 million) interest payment in full on March 7, in what would be the first default of an onshore bond. China Minsheng Banking (01988.HK), China CITIC Bank (00998.HK) and China Merchants Bank (03968.HK) all dropped more than 1.3 percent.

Meanwhile, software company CITIC 21CN (00241.HK) rose 15.8 percent Wednesday to reach its highest point since its takeover by Alibaba in January.

– Contact the writer at [email protected]


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