NEW YORK ( TheStreet) -- LDK Solar (LDK), Trina Solar (TSL - Get Report), Solarfun Power Holding (SOLF) and Yingli Green Energy (YGE - Get Report) gained 17.7%, 15.9%, 15% and 11.6% respectively during the past week. These stocks will likely generate attractive returns for investors in the short-term.
The fact that the Chinese government is promoting clean energy provides investors buying opportunity in the solar sector. China, on its way to reduce reliance on growth driven by energy-driven industries, plans to spend $738 billion over the next decade for developing cleaner sources of energy, according to the head of National Energy Administration's planning and development department.
LDK Solar, manufacturer of multi-crystalline solar wafers, recently said that the company commenced producing solar cells at its 60-megawatt (MW) facility. The company recently expanded vertical manufacturing facility by installing its first production line of solar cells. The plant would be expanded to 120 MW of production capacity by the third quarter.
The company had revealed that it seeks to increase its output to 18,000 metric tons by the end of 2011, thereby offering a huge potential for the investors. The company has plans to expand capacity for other solar products. On Aug. 30, Lazard Capital Markets reassigned a buy rating to the stock with a target price of $10. Currently the stock is trading around $7.65, highest level since May 2010.