Chinese solar stocks surged after authorities announced plans to eliminate export tax rebates on certain solar products, a sector long struggling with severe overcapacity.
Jinko Solar (JKS) gained 4.2%, while China’s Trina Solar rose 8.7% as of midday Monday in Shanghai trading.
The ministry also confirmed that VAT export rebates for battery products will be cut from 9% to 6% from April through December 2026, with a full phase-out scheduled for 2027. However, consumption-tax rebate rules for these products will remain unchanged.
Contemporary Amperex Technology Co. (CTATF) led the drop with a decline of as much as 4.8% in onshore trading on Monday, among the worst performers on the MSCI China Index.
Lithium (LIT), meanwhile, extended its recent rally on Monday, aided by expectations of a potential rush of battery-related exports ahead of the April policy changes.
The most-active lithium carbonate futures rose by the 9% limit on the Guangzhou Futures Exchange to 156,060 yuan ($22,372) a ton, Bloomberg reported. Shares of producers, including Tianqi Lithium Corp. and Ganfeng Lithium Group (GNENY) surged as much as 6% in Shenzhen.
