Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Thematic (Sector/Industry)

<ul>
<li>Many Chinese solar manufacturers slowed or halted production altogether in the first half of this year, as they struggled to survive amid overcapacity and an ensuing price war, prompting an industry group to call for faster consolidation among the firms.</li>
<li>“It’s rare for the whole industry to lose money,” Wang Bohua, honorary chairman of the China Photovoltaic Industry Association (CPIA), said at a solar conference in the eastern province of Zhejiang on Thursday.</li>
<li>“Among the companies in the main industrial chain that have released their half-year forecasts, most are in a state of loss,” Wang said.</li>
</ul>


Many Chinese solar manufacturers slowed or halted production altogether in the first half of this year, as they struggled to survive amid overcapacity and an ensuing price war, prompting an industry group to call for faster consolidation among the firms.
“It’s rare for the whole industry to lose money,” Wang Bohua, honorary chairman of the China Photovoltaic Industry Association (CPIA), said at a solar conference in the eastern province of Zhejiang on Thursday.
“Among the companies in the main industrial chain that have released their half-year forecasts, most are in a state of loss,” Wang said.


China’s Solar Sector Must Consolidate Amid Mounting Losses, Industry Group Warns 

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>One year after we started tracking solar investment in US, the planned capacity almost doubled to 123GW, comparing to addition of 32GW of capacity added in 2023;</li>
<li>However, there is a lack of wafer, ingot and polysilicon capacity in planning. Only 7GW of ingot capacity is planned, vs. cell capacity rose from 8% of total to 43%;</li>
<li>Chinese participation declined only slightly from 31% to 28%. Lack of wafer, ingot and polysilicon integration means cost of US production stays high. But overcapacity still restrains up stream profitability.</li>
</ul>


One year after we started tracking solar investment in US, the planned capacity almost doubled to 123GW, comparing to addition of 32GW of capacity added in 2023;
However, there is a lack of wafer, ingot and polysilicon capacity in planning. Only 7GW of ingot capacity is planned, vs. cell capacity rose from 8% of total to 43%;
Chinese participation declined only slightly from 31% to 28%. Lack of wafer, ingot and polysilicon integration means cost of US production stays high. But overcapacity still restrains up stream profitability.


US Battery and Solar Investments, One Year After, Part II

<ul>
<li>Contrary to battery, Chinese renewable energy companies have largely been absent in EU's solar capacity buildup.We believe the main reason is supply chain structure differences;</li>
<li>One year after we tallied the capacity in C2Q23,11% of the tallied capacity have been cancelled, but another 66% more have been added, among which, however,no ingot or polysilicon projects; </li>
<li>Wacker Chemie's 39GW polysilicon project needs to supply ~10GW of ingot and wafer,~13GW of cell and ~52GW of module, comparing to EU's 2023 installation of only 56GW, which is insufficient.</li>
</ul>


Contrary to battery, Chinese renewable energy companies have largely been absent in EU's solar capacity buildup.We believe the main reason is supply chain structure differences;
One year after we tallied the capacity in C2Q23,11% of the tallied capacity have been cancelled, but another 66% more have been added, among which, however,no ingot or polysilicon projects; 
Wacker Chemie's 39GW polysilicon project needs to supply ~10GW of ingot and wafer,~13GW of cell and ~52GW of module, comparing to EU's 2023 installation of only 56GW, which is insufficient.


EU's Battery and Solar Investments, One Year After, Part II

Cross Asset Strategy

<ul>
<li>IPO / In Depth: Why China is tightening its IPO regulation </li>
<li>Residency /Analysis: Property crisis pushes major cities to make it easier to get local residency</li>
<li>Property /China’s mortgage rates dip as central bank acts to bolster property market</li>
</ul>


IPO / In Depth: Why China is tightening its IPO regulation 
Residency /Analysis: Property crisis pushes major cities to make it easier to get local residency
Property /China’s mortgage rates dip as central bank acts to bolster property market


CX Daily: Why China’s Tightening Its IPO Regulation 

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>Based on the close of 24 May, there could be three changes for the <a href="https://www.smartkarma.com/entities/ishares-ftse-a50-china-index-etf" target="_blank" data-smartkarma-citation="entities:249:1" rel="noopener">iShares A50 China (2823 HK)</a>/ <a href="https://www.smartkarma.com/entities/csop-ftse-china-a50-etf-26e3b671-fa47-4165-a12e-bf841640c5a3" target="_blank" data-smartkarma-citation="entities:23664:1" rel="noopener">CSOP China A50 (HKD) (2822 HK)</a> in June.</li>
<li>
<a href="https://www.smartkarma.com/entities/cosco-shipping-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:27590:1" rel="noopener">COSCO SHIPPING (601919 CH)</a>, <a href="https://www.smartkarma.com/entities/crrc-corp-ltd" target="_blank" data-smartkarma-citation="entities:122:1" rel="noopener">CRRC (601766 CH)</a> and <a href="https://www.smartkarma.com/entities/china-national-nuclear-power-c" target="_blank" data-smartkarma-citation="entities:25348:1" rel="noopener">China National NuclearPower (601985 CH)</a> could replace <a href="https://www.smartkarma.com/entities/longi-green-energy-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:12703:1" rel="noopener">LONGi GreenEnergy (601012 CH)</a>, <a href="https://www.smartkarma.com/entities/csc-financial-co-ltd" target="_blank" data-smartkarma-citation="entities:27823:1" rel="noopener">CSC Financial (601066 CH)</a> and <a href="https://www.smartkarma.com/entities/china-tourism-group-duty-free-corp-ltd" target="_blank" data-smartkarma-citation="entities:12278:1" rel="noopener">China Tourism Group DutyFree (601888 CH)</a>. </li>
<li>There are a couple of stocks that are close adds and could become adds if they outperform higher ranked stocks in trading today.</li>
</ul>


Based on the close of 24 May, there could be three changes for the iShares A50 China (2823 HK)/ CSOP China A50 (HKD) (2822 HK) in June.

COSCO SHIPPING (601919 CH), CRRC (601766 CH) and China National NuclearPower (601985 CH) could replace LONGi GreenEnergy (601012 CH), CSC Financial (601066 CH) and China Tourism Group DutyFree (601888 CH). 
There are a couple of stocks that are close adds and could become adds if they outperform higher ranked stocks in trading today.


Offshore China ETFs Rebalance Preview: Three Changes in June; Cutoff Today

China

LONGi Green Energy Technology Co., Ltd. develops, manufactures and sells silicon rods and silicon wafers. The Company's main products include 6 inch, 6.5 inch and 8 inch monocrystalline silicon rods and wafers.

LONGi Green Energy Technology (601012 CH)

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LONGi Green Energy Technology (601012 CH)

China’s Solar Sector Must Consolidate Amid Mounting Losses, Industry Group Warns

Many Chinese solar manufacturers slowed or halted production altogether in the first half of this year, as they struggled to survive amid...

Caixin Global

US Battery and Solar Investments, One Year After, Part II

US solar PV capacity in planning more than doubled in the past year, but the addition was mainly in modules. There is a meaningful improvement in...

Blue Lotus Research Institute

EU's Battery and Solar Investments, One Year After, Part II

Chinese companies have been absent in building capacity in EU, due to lack of upstream material supply. EU's own capacity building is cautious and...

Blue Lotus Research Institute

CX Daily: Why China’s Tightening Its IPO Regulation

IPO / In Depth: Why China is tightening its IPO regulation China is tightening its grip on the country’s stock market with a set of new...

Caixin Global

Offshore China ETFs Rebalance Preview: Three Changes in June; Cutoff Today

There could be 3 changes for 2823HK/2822HK in June. Today is the price cutoff and there are a couple of close adds. Impact is not very large but...

Brian Freitas

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