(ReneSola story updated for closing stock prices.)JIASHAN, China ( TheStreet) -- ReneSola ( SOL - Get Report) has been on a run, gaining more than $1 in its share price since the beginning of this week. Since the end of November, ReneSola shares have gained more than $2. On Thursday morning, though, a potential hitch in ReneSola's plans to move downstream in the solar market -- and increase its earnings by way of the downstream growth -- surfaced. ReneSola said it was pulling out of a deal to acquire Dynamic Green Energy. By the close of Thursday's regular session, ReneSola shares lost 3.75% on volume of 5.2 million shares, more than double the average volume. The new year has started with investors placing bets that the Chinese solar players will continue to grow in 2010. Chinese solar players like JA Solar ( JASO), Solarfun Power Holdings ( SOLF) and China Sunergy ( CSUN) have also gotten off to a quick start in the new year. The assumptions about ReneSola's growth are called into question by the failed acquisition bid, and the market seems split on the importance of the acquisition to ReneSola's fortunes. The deal between ReneSola and Dynamic Green was first announced in September. ReneSola was expected to buy 100% of Dynamic Green's stock, but the Chinese solar player said today it was terminating the transaction as a result of the inability to receive the local government blessing for the transaction. Several local governmental agency approvals were required. The acquisition of Dynamic Green Energy was expected to help ReneSola move downstream in the solar market and become a more fully integrated solar company, manufacturing solar wafers and modules.
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