China adds $1.1bn to solar subsidies

China increased subsidies to its solar power industry by US$1.1 billion, doubling the amount committed to the sector this year and leading to a surge in the shares of US-listed Chinese solar firms, Reuters reported, citing stated-owned Xinhua News Agency. The finance ministry said the total value of this years support is now US$2.08 billion (RMB13 billion), the news agency said. Shares of Trina Solar (TSL.NYSE, TR3.FRA) and Yingli Green Energy Holding (YGE.NYSE, YG11.FRA) rose more than 20% during Wednesday morning trading in New York, while JA Solar Holdings’ (JASO.NASDAQ, Y12A.FRA) shares increased by 14%. Shares of Suntech Power Holdings (STP.NYSE, S9H.FRA) and JinkoSolar Holding (JKS.NYSE, ZJS1.FRA) increased by roughly 10%. The announcement follows on a Xinhua report Tuesday that cited an anonymous industry insider who claims that China will seek to double solar capacity to 40 gigawatts by 2015.