(Original) It looks like it, from the highs at 6,200 in early Oct to 5,200 now. But wait a minute, recently the US stock market suffered big loss because of the sub-prime meltdown, and weakening of the dollar. How could the mess in the US drag down the Chinese stock market?
Well, one can say we are in a global economy now, the ripple effect of US sub-prime meltdown means the US business and consumer will watch their wallet more carefully, which is bad for Chinese exporters. We all know the Chinese economy depends a lot on exporting to the US.
First is the SunTech Power (STP), it came to NYSE a little more than a year ago. The stock almost doubled from its debut. The company is founded by Australian Haigui and based on Wuxi, Jiangsu province. This is the largest Chinese solar panel marker and it’s profitable.
Then comes the Canadian Solar (CSIQ). Don’t know why it’s called Canadian. Maybe founded by Canadian Haigui? Anyway the company is based in Suzhou, Jiangsu province.
Just before Xmas 2006 two new players joined the party. Solarfun (SOLF) is based in Qidong, Jiangsu province. The rumor is the founder came from SunTech Power. Trina Solar (TSL), is based in Changzhou, Jiangsu. TSL is hot in last few days (don’t know why, not my specialty).
Last but not least, here comes the JA Solar (JASO). From its prospectus it’s from Hebei. The CEO worked for SunTech Power before founding the company.