Chinese solar shares extended their recent gains amid speculation the government will relax caps on renewable installation, improving the outlook for the sector

Xinyi Solar Holdings Ltd. and Flat Glass Group Co. both jumped at least 8%

market speculation China will allow a curtailment rate of more than 5% for power generated from renewable projects including solar farms

relaxation is likely given regulators’ recent tone on managing renewable power utilization at a “reasonable level”

raised the full-year estimate for China solar installation by 21%

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