NEW YORK ( TheStreet) -- Some of the hottest names in solar cooled off considerably on Wednesday, and sent signals that the run-up in Chinese solar stocks with which the new year began might be moderating.

Yingli Green Energy ( YGE) and Solarfun Power ( SOLF) were both down more than 4% on Wednesday. Both Chinese solar players saw significantly higher levels of trading than typical, too, with more than 2 million shares above daily average volume for Yingli and Solarfun.

Approximately 6.4 million shares of Yingli were traded on Wednesday, versus an average daily volume just over 4 million. Approximately 4.7 million shares of Solarfun were traded on Wednesday, versus an average daily volume of 2.6 million.

Trina Solar also traded at elevated volumes -- 2.95 million shares versus an average of 1.2 million -- and experienced a huge spike in the mid-morning on Wednesday.

The reduction in the French solar feed-in tariff regime was the news of the day, but solar stocks, for the most part, weathered that "regime" change.

Some notable Chinese solar stocks even finished up on Wednesday, led by JA Solar's ( JASO) gain of 1.9%. JA Solar did not benefit yesterday at a Needham and Company conference when one of its executives predicted big growth for solar in 2010, so maybe the big market sell-off yesterday created a one-day lag on the boost from that bullish JA Solar prediction.

Canadian Solar ( CSIQ) and China Sunergy ( CSUN) also finished up, but with gains of less than 1%.

On Tuesday, there was a broad market selloff, and the losses in solar matched the losses in the technology sector and the broader equities world. Wednesday's solar tariff reduction from France could have led to a knee-jerk reaction from investors, but it did not, leading some analysts to conclude that the losses from Yingli and Solarfun were just the typical ups and downs experienced by momentum stocks in the solar sector that had been on great runs.

Tuesday's market selloff, followed by Wednesday's solar specific-selling, did compound the declines for Yingli and Solarfun. Yingli has shed approximately $1.40 in its share price in the past two days, to $17.25 today, or a one-day 75 cent drop. Still, Yingli was at $12 in mid-November, so the two-day drop might seem minor in comparison to its share price rise.

Solarfun has lost 80 cents in the past two days, with equivalent drops on Tuesday and Wednesday, closing today at $9.61. Still, Solarfun shares were trading at $4.60 at the beginning of November, so the Chinese solar player may not mind so much giving back the 80 cents.

While Yingli and Solarfun lost a little ground, the U.S. solar firms were not heavy favorites by comparison, with both First Solar ( FSLR - Get Report)and SunPower ( SPWRA) both down on Wednesday, though by relatively small declines of less than 1%.

Yingli received a rating downgrade earlier this week. Solarfun recently announced three solar deals in China, but only for a total of 12.65 megawatts, and with one deal far from a final contract.

Yingli may have some interesting competition coming to market, also. On Wednesday, the other big news of the day was that Chinese polysilicon producer Daqo New Energy planned to go public in the U.S. Yingli and ReneSola ( SOL - Get Report) are among the three solar clients that account for 61% of Daqo's business, the filing said.

Interestingly, the downgrade Yingli received this week was due to its plans to break into Daqo's niche of actually producing polysilicon. Daqo, on the other hand, said in its IPO filing with the Securities and Exchange Commission that it plans to break into solar modules and systems manufacturing and installation, which is Yingli's current big business.

Are these two Chinese solar players -- one among the dominant in polysilicon production, while the other is among the dominant in modules and systems -- headed for a head-to-head battle as public companies muscling into each others' turf? Daqo also lists Suntech ( STP), another major Chinese player in the solar module and systems business, as one of its big clients.

At least for a day, with news of its IPO matched against Yingli's 4% decline, Daqo would have to be declared the solar winner.

-- Reported by Eric Rosenbaum in New York.

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