Chinese Solar Stocks Rise After Plan to Cancel Export Tax Rebates
By Jiahui Huang
Chinese solar stocks rose sharply after authorities' plan to cancel export tax rebates on some solar products, a sector that has faced severe overcapacity challenges.
Trina Solar's shares rose 8.7% as of midday Monday in Shanghai trading, while Jinko Solar gained 4.2%. JA Solar Technology and Longi Green Energy Technology rose 3.8% and 4.4%, respectively.
The gains came after China's Ministry of Finance said in a statement on Friday that the export value-added tax refund for solar and related products will be removed, starting April 1. Meanwhile, the refund rate for export value-added tax on battery and related products will be cut to 6% from 9% for April 1 to Dec. 31.
Beijing has undertaken efforts in recent months to address overcapacity issues in the Chinese economy, including the solar, battery and automobile sectors, among others.
"We are not surprised about the policy adjustment, especially after the previous round of refund rate cut in 2024," said Nomura analysts in a note. China's total export value for the first 11 months of 2025 for solar products was $26 billion, including solar cell and modules, Nomura noted.
In response, solar-module manufacturers could raise average selling prices in markets including Europe, while export demand in markets like Southeast Asia may face pressure, the Nomura analysts added.
The Chinese government had previously lowered the export value-added tax rebate on solar and battery products to 9% from 13% on Dec. 1, 2024.
Write to Jiahui Huang at jiahui.huang@wsj.com
(END) Dow Jones Newswires
January 11, 2026 23:35 ET (04:35 GMT)
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