CleanTech and China – Two Hot Stock Market Themes
Green technology stocks have been booming on stock markets around the world. The Chinese market is also hot. What happens when you combine the two?

Take two hot stock market themes – cleantech and China. Join them together and you’ve backed a certain winner. Right?

No, not necessarily.

The recent stock market volatility has been global, and China has not been immune. And with the investor flight to quality, cleantech stocks – which can often be high on “blue sky potential”, but low on actual profits – have been dumped.

For example, the solar energy sector enjoyed a fabulous year in 2007, rising about 70 per cent, on the back of higher oil prices and investor enthusiasm for the prospects of green energy. However, the sector fell 25 per cent in the first six weeks of 2008 (although in mid-February some of the stocks jumped by double-digit amounts on the back of better-than-expected results from First Solar).

Nevertheless, the Chinese economy remains in powerhouse mode, and the country is investing heavily in renewable energy, with some ambitious long-term targets. Alert investors should be following these issues.

Here then, to whet your appetites, are five Chinese companies, listed on US markets, that are heavily involved in global cleantech developments.

China Clean Energy owns Fujian Zhongde Technology, a specialty chemicals refiner that is moving strongly into biodiesel production for the Chinese market. In the September 2007 third quarter it reported that biodiesel shipments were up 91 per cent from September 2006, to comprise 29 per cent of total revenues. It expects to launch production at its new 100,000-ton biodiesel plant in Jiangyin late in 2008.

Gushan Environmental Energy, listed on the NYSE late in 2007, is China’s leading biodiesel producer, based mainly on vegetable oil offal and used cooking oil. It expects to boost annual production from 240,000 tons to 400,000 tons by the end of 2008.

JA Solar Holdings develops, manufactures and sells solar photovoltaic products to customers around the world. Its strengths include its ties to the JingLong Group, the world's largest mono-crystalline silicon manufacturer, and to the Australia PV Science & Engineering Company and the Australia Solar Development Company.

Suntech Power Holdings is the world’s largest solar module manufacturer, with sales offices worldwide. It designs, develops, manufactures and markets a wide variety of solar products for residential, commercial, industrial and public utility sectors. Its boss, Zhengrong Shi, was at one point China’s wealthiest citizen.

Welwind Energy International is building wind farms at Yangxi and Zhanjiang in Guangdong Province. It expects a total investment of $1.2 billion and the construction of 600 turbines.

February 18th, 2008

Contact
Privacy Policy

CleanTech and China – Two Hot Stock Market Themes Green technology stocks have been booming on stock markets around the world. The Chinese market is also hot. What happens when you combine the two?

CleanTech and China – Two Hot Stock Market Themes
Green technology stocks have been booming on stock markets around the world. The Chinese market is also hot. What happens when you combine the two?