Boston, MA 03/25/2013 (wallstreetpr) – Suntech Power Holdings Co., Ltd. (NYSE:STP) (Current: $0.423, Down by 3.98%) announced bankruptcy and is one of the Chinese equities listed in New York. Of these the solar stocks are the ones that are the most erratic and tend to fluctuate wildly. Gamco Investors Inc (NYSE:GBL) (Current: $56.28, Up by 1.75%) feels that that these stocks tend to be over-leveraged. After Suntech, LDK Solar Co., Ltd (NYSE:LDK) (Current: $1.22, Down by 3.94%) has been posting the highest changes and in 2013 was down by 15 percent. The former had defaulted on bonds worth $541 million and had dropped by 40%.
This particular industry has been struggling to keep afloat and a slowdown in demand bunched with excessive production capacity has led to net loses for the four major Chinese solar producers in the country. Suntech Power Holdings Co., Ltd. (NYSE:STP) had been unable to repay its debt of over $2.2 billion debt and eight of its Chinese lenders subjected it to a bankruptcy petition. On the other hand, Suntech is continuing with its production and in most probability reduce the market price of its products; this will pressurize the reeling industry even further. In March, the Wuxi, China-based Suntech said that it had put forth a petition for insolvency of its main operating subsidiary, Wuxi Suntech Power Company and that the local court had approved it.
Others affected too
Suntech is not the only one who is going downhill. The second largest maker of solar wafers in the world LDK Solar Co., Ltd (NYSE:LDK) (Current: $1.22, Down by 3.94%) has a debt of over $3.1 billion. China’s third-biggest solar maker, Trina Solar Limited (NYSE:TSL) (Current: $3.88, Down by 4.20%) announced in February that its net loss for last year had increased 7 times over and touched $267 million. The Baoding, China-based solar maker, Yingli Green Energy Hold. Co. Ltd (NYSE:YGE) (Current: $2.17, Down by 6.47%) has principle debt repayments totaling $603 million which will be due in 2015.
The couple of Chinese companies who fared a little better were SouFun Holdings Limited (NYSE:SFUN) (Current: $26.18, Up by 4.97%) and Yanzhou Coal Mining Co Ltd (NYSE:YZC) (Current: $14.11, Up by 2.39%). SouFun touched a three-week high on March 22 touching $26.18 which was a rise of 5 percent. Yanzhou which is the fourth largest coal miner in China exceeded analyst averages and raked in a 2012 net income of 6.22 Yuan.