(Bloomberg) -- Solar companies gained after the world's largest panel manufacturer said demand in China was rebounding.
JinkoSolar Holding Co. Chief Executive Officer Kangping Chen said in a statement Monday that Beijing's solar cutback has not slowed sales as much as expected and that a global supply glut is easing.
“We are confident that Chinese demand will return next year,” Chen said.
JinkoSolar rose 15 percent to $10.56 per American depositary receipt at 1:24 p.m. in New York, after earlier gaining as much at 21 percent. SunPower Corp. gained as much as 18 percent. The 16-member BI Global Large Solar index rose by as much as 1.4 percent.
China, the world's largest solar market, cut a key incentive this year for domestic solar development, hobbling global demand and driving down panel prices. The slowdown weighed on JinkoSolar and its competitors. Its shares are down 56 percent this year.
Yet China's pullback may not have been as significant as some analysts expected. Developers installed 34.5 gigawatts in the country through September, according to JinkoSolar. The China-based company shipped a record 2.95 gigawatts in the third quarter and expects to ship as much as 4 gigawatts in the fourth quarter.
To contact the reporter on this story: Christopher Martin in New York at cmartin11@bloomberg.net
To contact the editors responsible for this story: Joe Ryan at jryan173@bloomberg.net, Will Wade
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