According to Reuters, the state-owned banks provide low-interest loans to the solar energy industry under the promotion of a clean energy policy by the Chinese government. The provincial governments that helped set up these solar companies also required banks to continue to lend, which may make the already difficult solar industry worse.
This year, overproduction and inventory pressure have caused the price of solar photovoltaic panels to drop by about 40%. Analysts expect prices to fall further by 10% by early next year.
Analysts believe that the longer the credit bubble of the Chinese banking industry for the solar energy industry continues to grow, the larger the expansion will be, and the more fundamental and fundamental changes caused by the consolidation of the industry will be more drastic and unpredictable.
According to CLSA's data, as of June 30, the total loans of China's 13 largest solar energy listed companies have doubled from the same period of last year to about US$15 billion. Most of the debts are borrowed from Chinese banks and will expire within one year.
As inventory and debt accumulate, profits shrink, and the market deteriorates, a large number of weaker solar companies may eventually be eliminated. Solar energy industry analysts at CLSA expect that these companies will not be profitable in the next six months. It is expected that some companies will start to fail to repay loans and fall into the market for sale. In fact, the entire photovoltaic industry's balance sheet has been difficult to support.
According to sources in the banking industry, despite the local government's request for increased lending, in Jiangsu, one of China's largest photovoltaic panel production bases, local banks’ loans for photovoltaic companies have become more stringent. According to sources in the banking industry, the photovoltaic industry is very worrying and the industry must undergo painful restructuring. Some companies will have to face serious problems and may even go bankrupt. If banks tighten monetary policy, those companies that are short of funds may have to raise funds under adverse conditions or cut back on investment.
This year, overproduction and inventory pressure have caused the price of solar photovoltaic panels to drop by about 40%. Analysts expect prices to fall further by 10% by early next year.
Analysts believe that the longer the credit bubble of the Chinese banking industry for the solar energy industry continues to grow, the larger the expansion will be, and the more fundamental and fundamental changes caused by the consolidation of the industry will be more drastic and unpredictable.
According to CLSA's data, as of June 30, the total loans of China's 13 largest solar energy listed companies have doubled from the same period of last year to about US$15 billion. Most of the debts are borrowed from Chinese banks and will expire within one year.
As inventory and debt accumulate, profits shrink, and the market deteriorates, a large number of weaker solar companies may eventually be eliminated. Solar energy industry analysts at CLSA expect that these companies will not be profitable in the next six months. It is expected that some companies will start to fail to repay loans and fall into the market for sale. In fact, the entire photovoltaic industry's balance sheet has been difficult to support.
According to sources in the banking industry, despite the local government's request for increased lending, in Jiangsu, one of China's largest photovoltaic panel production bases, local banks’ loans for photovoltaic companies have become more stringent. According to sources in the banking industry, the photovoltaic industry is very worrying and the industry must undergo painful restructuring. Some companies will have to face serious problems and may even go bankrupt. If banks tighten monetary policy, those companies that are short of funds may have to raise funds under adverse conditions or cut back on investment.
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