Following the recent US-China summit, optimism for improved relations between the two countries has led to a sharp decline in solar stocks, which had previously surged. The expectation of benefits from increased US restrictions on China has weakened, resulting in a wave of profit-taking.
As of 2:59 PM on May 15, HD Hyundai Energy Solutions was trading at 195,600 won, down 48,400 won (19.84%) from the previous trading day. At the same time, OCI Holdings saw a drop of 80,000 won (21.95%), bringing its stock price to 284,500 won.
Recently, solar stocks had been buoyed by the US's efforts to effectively exclude Chinese solar supply chains. On May 8, Reuters reported that Sunrun, the largest residential solar installer in the US, had removed Chinese module manufacturers from its approved supplier list distributed to installation partners.
Sunrun cited uncertainties regarding compliance with the tax credit requirements under the US Inflation Reduction Act (IRA) as the reason for restructuring its supply chain to focus on non-Chinese sources. The approved list included only non-Chinese companies such as Silfab, Elin, and REC Group, while Chinese firms like Canadian Solar, JinkoSolar, and Longi Solar were excluded.
This development has fueled speculation that the Chinese solar supply chain in the US could collapse rapidly. Starting in 2026, the US plans to tighten the requirements for clean energy tax credits under the Made in America (MACR) standards, which, if not met, will restrict access to the Investment Tax Credit (ITC) and Production Tax Credit (PTC). As a result, companies like Hanwha Solutions and OCI Holdings, which have production bases in the US, have emerged as key beneficiaries.
However, following the US-China summit, the mood shifted as expectations for cooperation between the two nations grew. Concerns have increased that US restrictions on China may be less stringent than anticipated, leading to concentrated profit-taking in solar stocks that had previously surged on the back of US-China tensions.
* This article has been translated by AI.
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