The President of China, Xi Jinping, recently pledged that China’s carbon emissions would be neutral by the year 2060. We’ve heard world leaders make surprising promises in the past that never pan out, but this one seems to be different, and the stock market is proving it. With solar stocks being a hot topic considering global leaders and entities are looking for ways to reduce carbon emissions, Xi Jinping’s comments caught many experts off guard enough to grab their attention. China currently powers its country primarily using coal, so significant changes must happen quickly to even make the net-zero carbon emissions pledge a possibility. As an investor, here’s what you need to know about how the stock market has reacted to these recent events.
Which Solar Stocks Have Benefitted Most?
Some people may not be aware that China has acted progressively over the past decade and has created numerous solar module manufacturers during that time. There have previously been discussions about China entering the electric vehicle industry, including the batteries that support those vehicles. All of these events have led to the solar industry benefiting tremendously in the stock market. Companies like JinkoSolar and JA Solar Technology have at least doubled in price this year alone. Other companies like Daqo New Energy, Xinyi Solar Holdings, and China Longyuan Power Group also offer intriguing investment opportunities.
Innovation Is Only Scratching The Surface
The most attractive aspects of solar stocks an investor should pay close attention to are the innovative efforts by companies. The industry will undoubtedly experience ups and downs over the next 40 years, but innovation should remain high enough to keep the momentum going. As companies battle to have the most innovative product, the challenge they will have is making products that won’t be obsolete in several months because of a newer and better version. So as an investor, choosing stocks in companies with a reputation for innovation may be a good play today.
How Quickly Investors Should Pursue Solar Stocks
The stock market typically doesn’t react quickly when news comes out similar to the Chinese President’s pledge. However, with the steam solar stocks have gained in recent years, the stock market has reacted differently this time. Investors don’t necessarily have to rush to buy as many solar stocks as they can, but it’s not too soon to start pursuing various options and looking more closely at them, even if it’s just for diversification purposes at this point.
Stock Investing Info keeps up with the latest events and news worldwide to help investors know how their investments could be impacted. Solar stocks have been in the news a lot recently for various reasons, and the Chinese President’s recent pledge has gotten the attention of stock experts worldwide. Time will tell how sharply the stocks will rise or how volatile the market will be in the next several years, but never hesitate to contact us if you have any particular concerns about your investments.