NEW YORK (TheStreet) -- Yingli Green Energy (YGE) was gaining 6.1% to $4.26 after the solar panel maker signed a deal with Shanghai Sailing Capital Management to form a fund for the company's projects in China.
The 1 billion yuan ($161 million) fund will primarily invest in Yingli solar projects through various portfolios. Yingli will contribute 51%of the total capital through installments, though both Yingli and Shanghai Sailing Capital Management will "take an active role" in managing the fund according to the company's press release.
"As a long-term strategic repositioning, this cooperation is a solid step towards our transition from a PV manufacturer to a renewable energy solutions provider," Bryan Li, Executive Director and Chief Strategy Officer of Yingli Green Energy said. "By securing a priority right in investing in Yingli Green Energy's downstream solar projects, we should also be able to seek more sources of investment in solar PV projects, while at the same time minimizing potential risks."
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TheStreet Ratings team rates YINGLI GREEN ENERGY HLDGS CO as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate YINGLI GREEN ENERGY HLDGS CO (YGE) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins."