Chinese battery stocks fell Monday while solar shares rallied after Beijing announced major changes to its export tax rebate system. The Ministry of Finance and State Taxation Administration revealed plans to abolish value-added tax rebates for photovoltaic products starting April 1, 2026. For batteries, the rebate will drop from 9% to 6% through 2026 before disappearing entirely by January 2027.

This policy shift signals an end to the fiscal subsidies that helped China dominate global clean energy pricing. Solar manufacturers like Trina Solar and Jinko Solar saw shares surge nearly 10% and 8% respectively. Investors believe higher export prices could stabilize overseas markets and boost profit margins for producers.

Meanwhile, battery makers faced immediate pressure. Contemporary Amperex Technology Co Ltd (CATL) shares dropped 5%, and EVE Energy fell 3%. The rebate cuts will raise export costs and squeeze margins in an already competitive industry. Markets are now watching how these manufacturers will adjust pricing strategies ahead of the 2026 implementation.