China's Xinyi Solar falls most in over 9 months on JV deal with parent firm

Xinyi Glass Holdings

17/12/2021 06:58

** Shares of solar glass product maker Xinyi Solar Holdings
Ltd  0968.HK  fall 12.9% to HK$13.18, biggest daily pct decline
since March 4
    ** Stock hit lowest since Nov. 29; biggest percentage
decliner in Hang Seng Index  .HSI , and in Hang Seng Commerce &
Industry Index  .HSNC  
    ** Xinyi Solar and its major shareholder Xinyi Solar
Holdings  0868.HK  have agreed to set up a joint venture Xinyi
Silicon for production of polysilicon in China  urn:newsml:reuters.com:*:nFWN2T116Q
    ** The JV, which Xingyi Solar will own 52% and Xinyi Glass
at 48%, will have an estimated annual production capacity of
60,000 tonnes with funding commitment of 3.3 bln yuan ($518.09
mln) to be funded by internal resources
    ** Says demand for polysilicon would increase due to an
increasing number of solar farms to be constructed in China and
the JV will invest a total 6 bln yuan in polysilicon production
project 
    ** Daiwa says the JV is likely to face strong average
selling price and margin pressure when its new capacity comes
out in 2024E 
    ** Xingyi Glass shares fall 6% in the worst day since Oct 4
    ** Hang Seng Commerce & Industry Index  .HSNC  drops 2.5%
and Hang Seng Index  .HSI  falls 1.1%
    


($1 = 6.3695 Chinese yuan renminbi)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))