Correction to China Solar Stocks Article

By Jiahui Huang and Jason Chau

Chinese solar stocks rose sharply after authorities unveiled plans to cancel export tax rebates on some solar products, a sector that has faced severe overcapacity, while battery stocks fell amid investor concerns over higher costs for overseas shipments following the policy move.

Shares of Trina Solar closed 8.6% higher in Shanghai, while Jinko Solar gained 3.6%. JA Solar Technology and Longi Green Energy Technology also ended the day up 3.4% and 4.6%, respectively.

Meanwhile, shares of Chinese battery giant CATL, listed in both mainland China and Hong Kong, fell by nearly 5% on Monday morning before closing more than 2% lower. Shares of smaller peers, including Eve Energy, Gotion High-Tech and Sunwoda Electronic, also declined.

The moves followed a statement Friday from China's Ministry of Finance saying export value-added tax rebates for solar and related products will be eliminated starting April 1. The rebate rate for battery and related products will be cut to 6% from 9% for the period from April 1 to Dec. 31.

Beijing has stepped up efforts in recent months to address overcapacity across parts of the Chinese economy, including the solar, battery and automobile sectors.

"We are not surprised about the policy adjustment, especially after the previous round of refund rate cut in 2024," Nomura analysts said in a note. China's total export value in the first 11 months of 2025 was $26 billion, including solar cells and modules, the analysts said.

In response, solar-module manufacturers could raise average selling prices in markets such as Europe, while export demand in regions including Southeast Asia may come under pressure, according to Nomura.

The analysts also said leading battery makers may pass the higher costs on to downstream customers, particularly in the U.S. and Europe, while mitigating the impact through localized production in export markets, such as CATL's new plant in Hungary.

"We believe the impact is more controllable given a longer policy transition period," they added.

China previously cut the export value-added tax rebates for solar and battery products to 9% from 13% on Dec. 1, 2024.

Write to Jiahui Huang at jiahui.huang@wsj.com and Jason Chau at jason.chau@wsj.com

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

Revenue and net profit declined year-over-year due to intense PV industry competition, but sequential improvements in gross margin and cash flow were achieved. Sales volumes remained robust, and losses narrowed as cost controls and differentiated products took effect.

Original document: LONGi Green Energy Technology Co., Ltd. Class A [601012] Interim report — Nov. 28 2025

Most Chinese solar producers under Morningstar's coverage, including Longi, are expected to face continued losses in 2026 due to weak demand, with a recovery anticipated only in 2027, analyst Cheng Wang says in a note. Polysilicon, wafer, and cell prices have recently rebounded, supported by government efforts to address overcapacity and curb excessive competition, though module prices remain subdued amid soft downstream demand, Wang adds. Morningstar maintains its fair value estimates for all companies under its coverage, and notes that Jinko is undervalued, JA and Trina are fairly valued, and others are overvalued. Jinko lags peers due to decline in shipments but Wang remains positive on its long-term outlook. CSI, forecast to stay profitable in 2026, benefits from energy storage optimism, though Wang says its valuation appears stretched. (jason.chau@wsj.com)