U.S.-China Tag-Team Could Reignite Clean Tech Equities

This powerful tag-team could boost your clean energy portfolio, if they get their priorities in line.

Nearly 200 experts from China and the United States met Thursday to discuss the issue of climate change. The primary goal, according to The New York Times, is to “devise new ways in which Chinese and American researchers, corporations and others can work together to reduce greenhouse gas emissions.” Back in June, The Times quoted Massachusetts democrat Edward J. Markey, who called global warming talks between the two largest emitters of greenhouse gasses, “one of the most complex diplomatic negotiations in the history of the world.”

While the powerhouse nations have butted heads on climate change issues in the past, a push for collaboration could mean big things for various segments of the clean energy sector, which according to Reuters received 27% of all U.S. venture funding in the third-quarter.

As of this writing, tickerspy’s five green energy Indexes are mixed over the last month, as investors struggle to place value on the future of the relatively young technologies.

The energy storage sector has taken the top spot recently. Chinese players Hong Kong Highpower (HPJ), BYD (OTC: BYDDF) and China BAK Battery (CBAK) added more than 20% gains in the last month. China BAK Battery is giving back -10% of its rally today after announcing a $20.6 million share offering.

For battery companies, efficiency is the name of the game, and while much of the recent hype surrounds the push for electric cars, residual beneficiaries include various segments of the mobile technology sector, which rely on long-lasting battery power as well.

Wind energy stocks would also benefit from advances in energy storage. While turbines have proven effective in generating power, storage and transmission of the energy has hindered the segment’s growth.

Over the last month a more than 20% leap by American Electric Technology (AETI) has carried the Wind Energy Stocks Index ahead of the S&P 500. Meanwhile, Broadwind Energy (BWEN) has slipped by nearly the same margin.

Elsewhere in the clean tech sector, the Chinese Solar Stocks Index could use a lifeline. Wall Street’s darling segment during the first half of 2009 is now off by more than -10% in the last month – the most recent swing in a volatile consolidation pattern that has gripped the sector since June.

ReneSola (SOL), Solarfun Power Holdings (SOLF), LDK Solar (LDK) and JA Solar (JASO) are among the worst performers since late-September, all falling by -18% or more.

Investors should keep a close eye on tickerspy’s clean technology Indexes, as U.S.-China negotiations could have an impact on recent trends.

Tags: AETI, BWEN, BYDDF, CBAK, HPJ, JASO, LDK, SOL, SOLF