In Depth: Why China’s Once Red-Hot Solar Sector Is Cooling

In the last month of 2021, a Zhejiang-based solar power facility provider raised about 5.6 billion yuan ($884 million) in its Shanghai STAR Market listing, more than 10 times its target amount.

Hoymiles Power Electronics Inc. (688032.SH) had planned to spend the proceeds on building power plants and upgrading equipment, according to its prospectus (link in Chinese). But since its debut, the company has announced plans to use as much as 4.5 billion yuan of the windfall to buy financial products.