This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

China's Wind Energy Causes Stir

Stocks in this article: AMSC MY VWDRY GCTAY

NEW YORK ( TheStreet) -- China officially passed the U.S. as the world's largest wind market, but reaching that milestone had little affect on shares of China's leading wind-power companies.

Along with Sinovel, whose shares fell 10% in debut trading on the Shanghai Exchange Thursday, there has been weakness across the Chinese wind power sector.

Sinovel's decline brought its stock price to 81 yuan, after pricing in its IPO at 90.

Among other major Chinese wind-market players, Goldwind and the U.S.-listed Ming Yang Wind Power Group (MY) also saw their shares come under pressure in recent sessions.

Another negative headline for Sinovel this week came the day before its shares began trading: three of its workers died while installing a wind turbine. Even before the tragic mishap, Chinese authorities had been investigating saftey in the industry in the wake of several accidents involving turbine makers.

While a case can be made that Sinovel's IPO valued its shares too richly, the bigger data point out of China was the release of the annual wind-turbine installation number in 2010: the industry grew by 16 gigawatts, bringing the total wind market in China to 41.8 GW.

The U.S. market, which by all accounts experienced a disastrous 2010, totaled 40.2GW.

Despite capturing the world record, China's wind-energy business now faces the standard concerns that come with scale: Slowing growth. Indeed, the 16GW figure may have disappointed some investors, according to Ardour Capital analyst Jinming Liu, who had targeted 18GW for the year, among the most bullish of projections.

"This 16GW was a very good number, but it didn't put to rest the fears of a slowdown in China," Liu said, noting that in previous years the rate of growth in China's wind market had doubled. The 16GW came on top of an existing market of 25GW at the end of 2009.

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs