Chinese solar stocks rise as government cracks down on overcapacity

[Blue photovoltaic solar panels mounted on building roof for producing clean ecological electricity at sunset. Production of renewable energy concept.]
Bilanol/iStock via Getty Images

Chinese solar manufacturers rose Tuesday after state media reported that government authorities are planning stricter controls [https://www.reuters.com/sustainability/climate-energy/china-solar-stocks-rise-potential-capacity-controls-2025-10-14/] on the bloated manufacturing capacity that has created price wars and large losses for companies.

At midday, U.S.-traded shares of Canadian Solar (NASDAQ:CSIQ [https://seekingalpha.com/symbol/CSIQ]), Daqo New Energy (NYSE:DQ [https://seekingalpha.com/symbol/DQ]) and JinkoSolar (JKS [https://seekingalpha.com/symbol/JKS]) were +10%, +4.7% and +1.8%, respectively, while Trina Solar, JA Solar and LONGi Green Energy Technology all rose sharply in Shanghai.

China's solar industry, the world's largest, is facing significant losses as production capacity has increased to nearly double global demand, driving down prices to unsustainable levels.

The combined losses of six of China’s biggest solar panel and cell manufacturers doubled in H1 2025 to $2.8 billion (~20.2 billion yuan) from the same period a year ago, the Financial Times reported last month [https://www.ft.com/content/debdb94a-822d-4115-b45f-5623d9f9c7a2].

ETF: (TAN [https://seekingalpha.com/symbol/TAN])

MORE ON CANADIAN SOLAR AND DAQO NEW ENERGY

* Canadian Solar: Fade The Rally As Structural Headwinds Remain [https://seekingalpha.com/article/4827795-canadian-solar-fade-the-rally-as-structural-headwinds-remain]
* OBBB Shakes Up Solar Utility Hierarchy [https://seekingalpha.com/article/4814040-obbb-shakes-up-solar-utility-hierarchy]
* Daqo New Energy: Ride Your Winners - Bright Q3 2025 Prospects [https://seekingalpha.com/article/4827129-daqo-new-energy-ride-your-winners-bright-q325-prospects]