The rally followed the Democrats' strong performance in the US midterm elections, which investors believe could pave the way for the restoration of renewable energy tax credits and closer scrutiny of efforts to reverse existing emissions regulations.
China's position as a leading global supplier of solar panels, batteries and other clean energy technologies has placed its companies among the potential beneficiaries of any shift in US energy policy.
Morningstar analyst Cheng Wang said the United States remained an important and profitable market for solar energy and energy storage products, where Chinese manufacturers maintain a strong presence.
"The US is a large and highly profitable market for solar and energy storage, while Chinese suppliers dominate both sectors. Any reduction in trade barriers could create meaningful upside," Wang said.
However, he cautioned that the latest stock market gains were driven largely by investor sentiment rather than specific policy proposals.
Despite the optimism, Chinese clean energy products continue to face significant trade restrictions in the United States. Washington maintains 50 per cent tariffs on Chinese solar products under Section 301, which addresses alleged unfair trade practices, while grid batteries from China attract tariffs of 25 per cent.
Nevertheless, the optimism was reflected across China's clean energy market, with Shanghai's STAR new energy index rising by 6.46 per cent in morning trading on Thursday.
Several major Chinese manufacturers also recorded strong gains. Sungrow Power, an inverter manufacturer, advanced by 7.45 per cent, while solar panel producer Trina Solar rose 5.51 per cent.
Daqo New Energy, a polysilicon producer that has faced restrictions on exports to the US over allegations of forced labour, gained 9.87 per cent.
Contemporary Amperex Technology Co. Limited (CATL), one of the world's leading battery manufacturers, also recorded a 5.17 per cent increase.
The gains followed a broader recovery in renewable energy stocks in the United States after the Democratic electoral success, which investors viewed as a setback for President Donald Trump's criticism of wind and solar power.
Trump has repeatedly questioned the reliability and cost of renewable energy sources, while his administration has also considered measures that could affect foreign-made power inverters over concerns about potential interference with electricity grids.
Reuters had previously reported that the administration was considering a possible ban on foreign inverters, citing concerns about China's potential ability to interfere with US electricity infrastructure.
Analysts believe the latest rally could continue, pointing to previous market reactions to changes in US political leadership.
Citi analyst Pierre Lau said historical trends suggested there could be further room for gains, citing the performance of clean energy stocks following Joe Biden's victory in the 2020 presidential election, when the sector recorded gains over several months.
However, analysts have also cautioned against interpreting the market rally as evidence that Washington is preparing to ease restrictions on Chinese clean energy exports.
Jefferies analyst Alan Lau said the sector was also benefiting from investors shifting their attention away from artificial intelligence-related stocks.
He, however, warned that renewed political support for renewable energy in the United States would not necessarily translate into a significant opening of the market for Chinese manufacturers.
"The Biden administration launched lots of AD/CVD (anti-dumping and countervailing duties) and Section 301 investigations on Chinese products," he said.
The latest developments highlight the delicate balance between Washington's domestic clean energy ambitions and its trade restrictions on Chinese manufacturers, leaving investors to weigh the potential benefits of stronger renewable energy support against the possibility of continued trade barriers.