State-backed funds are exiting! The National Development Fund sells shares, and with the nuclear power restart, the share price of United Renewable Energy (3576) crashes to a daily limit down

Taiwan’s major solar energy company United Renewable Energy (3576.TW) has seen sharp price fluctuations recently. After the National Development Fund announced it would begin adjusting its shareholding, selling pressure surged in the market, pushing the stock to the daily limit down. In addition, after Taiwan released signals about restarting nuclear power, some investors interpreted the National Development Fund’s shareholding adjustments as a sign that “the policy capital is starting to loosen its grip.”

When the National Development Fund exits, United Renewable Energy hits the daily limit down

The main driver of this stock price turbulence is the National Development Fund’s announcement that, between April 13 and May 12, it will transfer in batches through the centralized market about 4,201 shares of United Renewable Energy, totaling about 4,201,476 shares. If calculated based on the April 10 closing price of NT$19 per share, the total disposal amount is approximately NT$79.82 million. Before the disposal, the National Development Fund held about 98.77 million shares, representing 6.07%; after completion, this will fall to about 94.57 million shares, indicating that it is gradually adjusting its investment positions.

The founding of United Renewable Energy itself already carries a policy-driven color. The company was formed by consolidating three industry players—Sun New Power, Eiko, and Sunet Power—and its background can be traced back to the time when Taiwan’s solar industry faced pressure from low-priced competition from China. In October 2018, the National Development Fund entered the market through the “Industry Innovation and Transformation Fund,” with the goal of fostering domestic solar leaders with scale and competitiveness to counter international price wars.

United Renewable Energy announces: Shareholders realize profits; an Industry Innovation Act clause exit

Regarding this share release, United Renewable Energy emphasized that it is a routine exit mechanism after completing a phased mission. Under the “Industry Innovation Act,” its investment purpose is to support the development of key domestic industries. When the investment target has achieved phased results and realized profits, asset allocation adjustments will be made in line with market timing, and funds will be recovered to invest in other industries with development potential.

United Renewable Energy also issued a statement saying it thanks shareholders for their long-term support and emphasized that the company’s solar photovoltaic products have firmly maintained a leading position in the domestic market. It also said it actively responds to the global ESG sustainable supply chain trend and expands into international markets. The company stated that its management team will continue to focus on improving competitiveness and move toward its positioning as a global low-carbon energy provider.

However, the market’s interpretation is somewhat conservative. The National Development Fund’s shareholding adjustment has been viewed by some investors as a sign that the policy capital is starting to “loosen its grip.” Coupled with Taiwan’s signaling to restart nuclear power, this caused short-term selling pressure to be concentratedly released, resulting in the stock falling to the daily limit down.

This article, “The national team exits! The National Development Fund sells shares, plus restarting nuclear power—United Renewable Energy (3576) stock price crashes to the daily limit down,” was first published in Lian News ABMedia.