Chinese solar stocks surge amid possible price control measure

Chinese solar stocks surged today following a report concerning the reduction of solar companies' polysilicon output to support prices.

A leading polysilicon producer has proposed to reduce production and set a target range of supported prices, according to mainland media.

The manufacturer has communicated with a number of polysilicon manufacturers, but it is still unknown whether the plan will be implemented, the report said.

As a result, stocks of GCL Technology (3800) leaped 15.3 percent before narrowing to a 3.53 percent increase at the close. Similarly, the increase of Xinte Energy's (1799) shares slipped from 5.51 percent to 0.42 percent.

Another way to solve the low prices stemming from polysilicon over-supply is to stop production and prioritize selling off inventories, with the aim of making polysilicon producers slightly profitable or at least prevent losses, some industry insiders said.

HELEN ZHONG