Yingli Green Energy Holding is one of my favorite stocks because it combines two major investment trends–green energy and China.
The stock is rallying strongly. YGE has been up by as much as 14.3% today. The news that sparked the rally is that China is offering major subsidies for independent solar power projects.
“This is very positive for the solar sector and positive for solar stocks out there,” said Christine Wang, an analyst with HSBC.
Beijing’s bid to boost the solar energy sector could draw more than $10 billion in private funding for projects and put China on track to become a leading market for solar equipment in the next three years. [ID:nHKG193]
As the world’s top greenhouse gas polluter, China is trying to catch up in a global race to find alternatives to fossil fuels, blamed for carbon emissions affecting the planet’s climate.
The Ministry of Finance said the government will subsidize 50 percent of investment for solar power projects as well as relevant power transmission and distribution systems that connect to grid networks.
For independent photovoltaic power generating systems in remote regions that have no power supply, the subsidy will rise to 70 percent, the ministry said in an announcement on its website (www.mof.gov.cn).
This is very good news for Yingli Green Energy.