Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: China's Ministry of Finance announced it will give manufacturers of solar products a 50% refund on value-added taxes to help the industry. This would lower the cost to manufacture a solar module and should help with anemic margins for manufacturers.
Now what: The Chinese solar industry as a whole is up today with Suntech and LDK leading the way, a curious move by these stocks. Both companies have defaulted on debt payments and are going to have to restructure operations. Shareholders won't likely be left with much in a restructuring considering the billions in debt both companies have, which means I wouldn't buy the move of either today.
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