Bloomberg News

Suntech Drives Solar Makers’ Surge as NQ Drops: China Overnight

November 04, 2013

Chinese stocks advanced in New York, led by Suntech Power Holdings Ltd. and Yingli Green Energy Holdings Ltd. (YGE:US), on prospects a global oversupply of solar panels is easing.

The Bloomberg China-US Index of the most traded Chinese stocks in the U.S. added 0.7 percent to 103.82, the highest since Oct. 22. Suntech, whose main unit was put in bankruptcy in March, rallied 17 percent. Online retailer Vipshop Holdings Ltd. (VIPS:US) jumped to a record as Citigroup Inc. raised its price estimate on the shares. NQ Mobile Inc. (NQ:US), the mobile-services provider that was accused by short-seller Muddy Waters LLC last month of engaging in a “massive fraud,” sank for a second day.

Prices on silicon solar modules, used to make solar panels, rose 1.4 percent in October as demand from China, Japan and the U.S. increased, according to Bloomberg Industries, after a global oversupply of solar panels led to a 20 percent price drop last year. Canadian Solar Inc. (CSIQ:US), a Guelph, Ontario-based producer of photovoltaic panels, said yesterday that it expects to report its first quarterly profit in more than two years.

“Pricing has stabilized across the industry,” James Evans, a senior analyst at Bloomberg Industries, said in a telephone interview from London. “We are seeing some operation improvements. There’s some potential for that to continue.”

The iShares China Large-Cap ETF (FXI:US), the largest Chinese exchange-traded fund in the U.S., rose 0.1 percent to $37.86 in New York. The Standard & Poor’s 500 Index climbed 0.4 percent to 1,767.93 as Exxon Mobil Corp. and U.S. Steel Corp. led a commodity rally.

Shunfeng Purchase

Suntech, the world’s largest photovoltaic maker by shipments in 2011, jumped to $1.54. The company said on Nov. 1 that Shunfeng Photovoltaic International Ltd., a Chinese solar company, agreed to buy its unit Wuxi Suntech Power Co. for 3 billion yuan ($492 million).

The Suntech unit was pulled into bankruptcy in March and will use the proceeds to pay expenses and debts it owes.

Yingli, the largest solar-panel maker, rose 7.1 percent, the biggest increase since September, to $6.77. Trina Solar Ltd. (TSL:US), based in Changzhou, Jiangsu Province, climbed 9.4 percent to $16.77.

American depositary receipts of China Telecom Ltd. (CHA:US), the country’s third-biggest mobile phone company by users, advanced 2 percent to $52.97, the highest since Oct. 22. The ADRs traded 1.9 percent above shares traded in Hong Kong, the biggest premium since Oct. 10, according to data compiled by Bloomberg.

Vipshop jumped 12 percent to $79.01, the highest since its listing in March 2012. Citigroup’s analysts predicted the shares will rise to $85, citing progress on “operational efficiency.”

Qunar, 58.Com

NQ Mobile, based in Beijing, fell 6.6 percent to $11.94. The shares have tumbled 48 percent since Muddy Waters said Oct. 24 that the company overstated its revenues. NQ has denied the allegations. More than $560 million in market value has evaporated since Muddy Waters made a “strong sell” recommendation.

LightInTheBox Holding Co., (LITB:US) a Beijing-based online retailer, tumbled 7.4 percent to $7.93, the lowest since its initial public offering in June. Its decline was the biggest among U.S.-listed Chinese firms.

Qunar Cayman Islands Ltd. (QUNR:US), a travel-booking service controlled by Baidu Inc., slid 4.2 percent to $27.21, after surging 89 percent in its debut on Nov. 1. 58.Com Inc., (WUBA:US) a Craigslist-like Chinese online marketplace, slipped 1.7 percent to $24.58, trimming the gains since its Oct. 31 IPO to 45 percent.

Five Chinese firms have completed U.S. IPOs this year, rallying an average 51 percent, according to data compiled by Bloomberg.

The Hang Seng China Enterprises Index (HSCEI) in Hong Kong, which gained 3 percent in October, advanced less than 0.1 percent to 10,686.06, while the Shanghai Composite Index (SHCOMP) was unchanged at 2,149.64.

To contact the reporter on this story: Ye Xie in New York at yxie6@bloomberg.net

To contact the editor responsible for this story: Tal Barak Harif at tbarak@bloomberg.net


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Companies Mentioned

  • YGE
    (Yingli Green Energy Holding Co Ltd)
    • $3.09 USD
    • -0.02
    • -0.65%
  • VIPS
    (Vipshop Holdings Ltd)
    • $181.62 USD
    • -7.39
    • -4.07%
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