Investors less enthusiastic about China's wind farms

10:14, December 16, 2010      

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Huaneng Renewables, the wind power subsidiary of China's leading power producer,China Huaneng Group, pulled its December 16 Hong Kong IPO plan because of insufficient investor support to reach the minimum subscription, and this shows investors are losing enthusiasm for China's wind farms, National Business Daily said Wednesday.

Huaneng Renewables called for subscriptions for not more than 9.89 billion yuan ($1.49 billion) of shares on December 6, but investors did not show enough interest.

Experts said that there are two main reasons for the investors' frigid response - a slowdown of wind farm construction and China's policy changes, according to the report.

Zhou Tong, Strategy Director of Goldwind Science &Technology Co. Ltd., one of the country's largest wind turbine manufacturers, said that China's wind farm construction has been sliding, and that the farms can't reach massive production to provide users with reasonable prices. He also said that the national power grid only uses a limited amount of electricity generated by wind farms, and these factors all impact investor confidence.

Han Xiaoping, CEO of online energy information portal, said that China's wind farms rely too much on the government's favorable policies. He also said the policy changed in the fourth quarter this year, and it includes less subsidies and stricter measures for approval, leading to weaker investor confidence.

Source: Global Times
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