Dallas, Texas 10/14/2013 (Financialstrend) – JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) is a China based specialized semiconductor and solar solutions manufacturer. The stock of this firm has been part of the mass upwards and downward rallies that the markets have experienced over the past forth night.
Around the September 30 time frame along with other solar manufactures and suppliers, JASO stock zoomed up close to 4% in the backdrop of Chinese government offering solar equipment manufactures significant tax cuts in order to encourage solar power adoption. The government of the fastest growing economy in the world has set a target of 34GW of power generation through solar installations by 2015. In order to build momentum for this initiative, it cut down by 50% the value added tax that solar manufacturers had to pay on sales. This low tax holiday will extend from October 2013 to December 2015. The stock of most Chinese solar power equipment manufacturers zoomed ahead with few competitors to JASO like STP and CSUN recording appreciation of their market by 15% and 23% respectively.
Then towards last week on October 8, markets started to panic on the fears of imminent debt default by United States government with politicians still grappling with the budget proposal for FY14.
This was followed on October 9 with stock of solar companies shedding their market value as markets reduced their exposure to perceived risk assets like solar sector which are heavily dependent on government policy. In the sell off JA Solar loss in value was a noticeable with close to 6.5% of its market value getting wiped off through the day’s trading. Stock of other solar manufactures followed suit with JinkoSolar losing 5.6% of its value and First Solar close to 2% of its value. During trading on October 11, JASO stock regained some of its lost valuations on the back of stronger 4Q guidance by SolarCity.