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Caixin

In depth: Why China's once red-hot solar sector is cooling

Shortage of polysilicon, withdrawal of subsidies putting squeeze on industry

A solar power plant in Pingdingshan, China.    © Reuters

In December 2021, a Zhejiang-based solar power plant company raised about 5.6 billion yuan ($884 million) in its Shanghai STAR Market listing, more than 10 times its target amount.

Hoymiles Power Electronics had planned to spend the proceeds on building power plants and upgrading equipment, according to its prospectus. But since its debut, the company has announced plans to use as much as 4.5 billion yuan of the windfall to buy financial products.

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