Chinese solar energy firms saw their share prices surge yesterday after Beijing announced a 50% refund in value added tax.
Suntech Power Holdings rose 25% on the NASDAQ from an opening price of US$1.34 to US$1.68 at the close of trading. LDK shares rose 25.8%. Yingli and Trina also enjoyed more modest gains of 4.8% and 6.8% respectively.
Bloomberg reported that its index of 102 global solar companies on the New York Stock Exchange rose 2.6%.
During the weekend the Ministry of Finance confirmed that Chinese solar manufacturers would receive a 50% rebate on value added tax, which is charged at 17% on gross sales.
The ministry said the policy would be implemented from 1 October 2013 till 31 December 2015.