In a rapidly globalizing economy, Chinese photovoltaic (PV) enterprises are actively pursuing international expansion strategies while simultaneously broadening their channels for international financingThis momentum is particularly evident as major players in the solar energy sector seek to capitalize on growth opportunities beyond domestic borders.

Recently, JA Solar Technology Co., Ltd. (002459.SZ) announced its intention to issue overseas listed foreign shares (H-shares) and apply for a listing on the main board of the Hong Kong Stock ExchangeThis move is designed to propel the company’s global development strategy forward, enhance its market positioning, strengthen supply chains, and improve research and development capabilities, all while creating an international capital operation platformUltimately, it aims to elevate the company’s brand image on the global stage and bolster its capital strength and overall competitiveness.

If JA Solar’s listing in Hong Kong proceeds without hitches, it will establish an "A+H" dual-listing frameworkRepresentatives from JA Solar indicated that one of the primary motivations behind this listing is to realign overseas production capacities and set up a fundraising platform through the Hong Kong stock exchange, allowing for optimized asset structures and ownership frameworks.

It is essential to highlight that JA Solar is not alone in pursuing such international financing strategiesA number of PV enterprises are exploring various means to access global capital markets, including the issuance of global depositary receipts (GDRs) and overseas bonds.

Among these enterprises, JA Solar stands out as a global leader in the integrated PV component industry, consistently ranking among the top companies in terms of long-term component shipmentsThe company has strategically focused on mature PV markets such as China, Europe, and the United States, while also branching out into emerging markets like Southeast Asia, Australia, Latin America, the Middle East, and Africa

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As part of its globalization strategy, JA Solar has established sales offices and regional operation centers overseas while building production capabilities outside of China.

Over the last two years, an accelerated trend has emerged as PV companies, held back by supply-demand imbalances and trade barriers, have increasingly established manufacturing facilities abroad, particularly in the U.S., Europe, and the Middle EastJA Solar, for instance, is building upon its production capabilities in Vietnam and the United States while eyeing further expansion into the Middle East.

In December 2024, JA Solar revealed plans to invest approximately 39.57 billion yuan in a solar battery project with a capacity of 6GW and a 3GW component project in OmanThis commitment reinforces the company's focus on globalization as a critical development strategy, showcasing substantial efforts to create a global sales and service network, with overseas operations now comprising over 50% of total business.

According to comments made during investor relations activities, the Oman project is slated to kick off construction in 2025. JA Solar's management has indicated a readiness to assess global market demands alongside the company’s existing production capabilitiesThey aim to ensure sustainable operations during the industry's cyclical downturn while maintaining robust growth prospects.

Moreover, as recently as a month ago, JA Solar formalized a memorandum of understanding (MOU) with the Egyptian government and Global South Utilities from the UAE, intending to establish a 2GW solar battery and a 2GW photovoltaic module factory in EgyptThis MOU marks a preliminary agreement among collaborating partners, with further discussions anticipated regarding detailed aspects of the project's construction scale and ownership structure.

When explaining the rationale behind the Hong Kong listing, JA Solar shared that the primary aim is adjusting its overseas capacities and creating a fundraising platform on the Hong Kong market, ultimately optimizing its asset layout and shareholding structure

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They noted that the focus of the company’s overseas production is shifting from a primary concentration in Vietnam to a more diversified approach that includes the Middle East, where trade conditions and cost management currently present competitive advantagesFurthermore, the choice to pursue listing in Hong Kong is motivated by a more favorable financing environment.

Indeed, since 2025, there has been a noticeable trend among A-share-listed companies moving to list in Hong KongVeteran investment bank representatives, such as Wang Jiyue, have pointed out that many A-shares are opting for this route to explore international markets that require global financing platformsThe added financing sources help bolster company growth prospectsAdditionally, the recent performance of Hong Kong’s capital market has been strong, attracting substantial global capital investment and providing a supportive backdrop for stock prices.

JA Solar is not the first PV firm to chart a course for a Hong Kong listingIn February 2024, Junda Co., Ltd. (002865.SZ) also filed for a public offering of its H-shares on the Hong Kong Stock Exchange, followed by an updated application for listing in October 2024. The capital raised by Junda will be channeled into constructing overseas production capabilities for efficient solar cells, expanding into new international markets, and establishing robust sales and operational frameworks overseas.

Vice General Manager Zheng Hongwei emphasized that demand for PV installations overseas is now outpacing domestic developments, presenting significant growth opportunities in international marketsThe rapid increase in overseas PV component production has led to an uptick in battery demand, creating a favorable environment for specialized PV battery manufacturers to expand their global footprint.

Equally noteworthy, there are indications that Qinhai Lihao QingNeng Co., Ltd. plans to conduct its IPO on the Hong Kong Stock Exchange in the second half of 2025, projecting to raise approximately 1 billion yuan (around 1.08 billion Hong Kong dollars). As of the time of writing, though, Qinhai Lihao has not responded to inquiries regarding its IPO.

Established in 2021 by Duan Yong, a former board member of Tongwei Co., Ltd. (600438.SH), Qinhai Lihao has completed several rounds of financing over the past four years, attracting investments from prominent industry players such as Trina Solar, Jinglong Group (300316.SZ), and IDG Capital.

Over the last year, PV enterprises have diversified their methods for tapping into international financing channels

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In October 2024, Sungrow Power Supply Co. (300274.SZ) and JinkoSolar Holding Co. (688223.SH) announced plans to issue GDRs and list them on the Frankfurt Stock Exchange, with intended fundraising caps of 4.878 billion yuan and 4.5 billion yuan, respectively.

The allocation of funds for Sungrow primarily targets new production projects for advanced energy storage equipment, expansions into overseas inverter and energy storage manufacturing, as well as a digital upgrade project and the construction of a R&D center in NanjingMeanwhile, JinkoSolar aims to fund a 1GW high-efficiency module project in the U.S. and a 14GW integrated production base in Shanxi, in addition to supplementing working capital or repaying bank loans.

Sungrow stated that by issuing GDRs, the company hopes to seize strategic opportunities in the burgeoning global energy storage market while reinforcing its global leadership in energy storage solutionsSimilarly, JinkoSolar conveyed that its GDR issuance will support advancements in N-type module production and expedite the establishment of its international production capabilities as part of its globalization agenda.

It is also essential to mention that other companies, including Aiko Solar and Foster (603806.SH), had previously announced intentions to issue GDRs for listing on the Swiss Stock Exchange but subsequently halted these plans in June 2023 and January 2024, respectively.

Furthermore, in January 2025, in pursuit of business development needs and diversified financing channels, as well as optimizing debt structures and enhancing financial flexibility, Dongfang Risheng (300118.SZ) announced plans to issue overseas bonds amounting to no more than 500 million euros (or its equivalent in foreign currency). The move is aimed at maximizing the company's opportunities for issuing bonds in accordance with the relevant guidelines of the European multilateral trading system or other foreign exchanges.

Just before the Spring Festival of 2025, Dongfang Risheng informed reporters that the board of directors and shareholders had approved the resolution to issue overseas bonds, moving it into the preparatory implementation phase

The company reiterated its commitment to enhancing communication with overseas investors, thereby bolstering its image in the international capital market and laying the groundwork for its overseas business while alleviating financing pressures.