As markets deteriorated, the PV industry's balance sheet has become increasingly difficult to support. According to statistics, as of June 30, China's 13 largest solar IPO loans 1 time-fold increase over the same period last year, reached 15 billion dollars. Agency analysts predict, they will not have a profit in the next six months, some companies are expected to start does not afford loans, were sold in jeopardy. The vast majority of debts borrowed from Chinese banks, and will be due within one year. If banks tighten those financing for cash-strapped companies may have to take a negative premise, or cutting investment. Banking industry sources say, photovoltaic industry is very worrying, the industry is bound to set off a painful restructuring. As the inventory and debts piling up, profits shrinking and deteriorating market, a large number of weaker solar companies may ultimately being eliminated.
Although inspired by the development of clean energy policy by the Chinese Government, the State-owned banks providing low interest loans to the solar industry, but since this year, produced surpluses and stocks accumulated PV panels price falls of about 40%, is expected early next year, prices will fall further 10%. Some businesses will have to face the tough topics, and even bankruptcy.
Analysts believe that solar industry by the China banking credit bubble last longer, more expansion would result in fundamental amendments arising from industry consolidation and the more violent and more unpredictable.
According to banking sources said, while local Government calls for increased lending, but in China, one of the largest photovoltaic panels producing base in Jiangsu, local bank loan for photovoltaic business are becoming increasingly strict. Has been helping set up the provincial governments of solar companies also require banks to prudent lending, it may make the already troubled solar industries compounded by. Government is beginning to feel the "blood transfusion" is not conducive to the growth of these enterprises to help its own "blood", is a proven methodology
