Waaree Energies, Premier Energies shares rally up to 5% after China moves to curb solar export rebates – News Air Insight

Shares of India’s solar manufacturing plays rebounded sharply on Monday, with Waaree Energies and Premier Energies climbing up to 5% after weeks of bruising losses, as investors reacted to a policy shift in China that could ease pricing pressure across the global solar supply chain and revive interest in beaten-down sector leaders.

Waaree Energies surged as much as 5.4% to Rs 2,681.8, while Premier Energies rose up to 4.4% to Rs 749.5 in early trade on January 12. The gains came after China said it would cancel or sharply reduce tax rebates on a wide range of export products, including solar cells, a move that analysts see as potentially supportive for non-Chinese manufacturers.

According to a statement from the Chinese finance ministry dated Friday, January 9, and accessed by CNBC-TV18, China will cancel or reduce tax rebates on hundreds of products as it seeks to reassure trade partners over rising Chinese exports.

Starting April 1, the Chinese government will remove value-added tax rebates for 249 products, including solar cells, ceramic roof tiles and lithium hexafluorophosphate. The VAT rebate for photovoltaic and other related products will be cancelled from April 1, 2026.

The rebate rates on 22 battery-related goods, such as lithium-ion batteries, will be lowered to 6% from 9% earlier, and will be completely removed from January 1, 2027.

Chinese industries, including solar, have been grappling with overcapacity and intense price competition, a backdrop that has weighed on margins and valuations globally.

Divergent exposure, shared relief

While Premier Energies does not have a significant presence in export markets, Waaree Energies does, making the Chinese policy shift particularly relevant for the latter.

The rally marks a pause in a steep selloff for both stocks. Premier Energies was on a six-day losing streak and had gained only once in the previous 11 sessions. Waaree Energies has declined in 10 of the 12 trading sessions since December 23, ending unchanged in one.

Both companies are relatively new entrants to the futures and options segment. Premier Energies has corrected nearly 45% from its peak, while Waaree Energies is down more than 30% from its recent 52-week high, reflecting the depth of the recent downturn that Monday’s rebound is seeking to arrest.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)