Chinese PV manufacturers needs new emerging markets

Chinese solar companies are facing a steep price for their dominance in the global market. Despite controlling 80% of production capacity, their weak stock performance signals that growth has outpaced demand. China's massive investments have led to an oversupply of solar products, with prices dropping by 40% in 2023 alone. While this abundance benefits the environment and renewable energy goals, the rapid expansion has left the industry struggling to absorb excess capacity. Chinese firms, such as Longi Green Energy Technology and JA Solar Technology, have seen their stock prices plummet by over 50% in the past year, reflecting investor concerns about profitability. Operating margins have halved over the last four years, and regulatory probes into Chinese firms' activities in Europe further underscore the challenges facing the industry.

Source: FT