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


Corrections & Amplifications

This article was corrected at 1131 GMT to clarify that Chinese solar stocks jumped, while battery shares slid on Monday. An earlier article incorrectly said that stocks in both sectors fell.

(END) Dow Jones Newswires

01-12-26 0531ET