Shares of Chinese PV companies trading in the US have soared on news that the Chinese government is set to inject an additional RMB7 billion (US$1.1 billion) into subsidies for its PV industry.
Following news of the extra subsidies, Reuters reported that shares in Trina Solar and Yingli Green Energy Holding rose by a sharp 20% during the morning trading while JA Solar Holdings shares surged by 14%. Shares of JinkoSolar Holding and Suntech Power Holdings also increased, by around 10%.
Meanwhile, heavily indebted wafer manufacturer LDK Solar saw its shares grow by 16% in the afternoon trading.
The addition brings the total support from the government to RMB13 billion, Reuters reveals, citing Chinese news site Xinhua. It also comes a day after Xinhua stated that China may double its installed PV capacity to 40GW by 2015. It was only in September when China announced an increase in its 2015 PV target to around 21GW, representing the third rise in just over a year.