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Shares of China-based solar stocks are down across the board today after the Shanghai stock market fell 6.7% overnight on fears that the country’s economic growth could slow due to a slowdown in lending growth. Acording to Bloomberg, former Morgan Stanley Asian economist Andy Xie said the China market could drop another 25%, on top of a 22% slide in August.

Among the China-based solar names:

China Sunergy (CSUN) shares are trading higher after the solar cell manufacturer posted better-than-expected Q2 results.

For the quarter, CSUN reported revenue of $70.1 million, up 89.5% sequentially, and above the Street at $60.8 million. Non-GAAP EPS of 3 cents a share beat the Street consensus of a penny a share. The company attributed the strong results to “effective financial and inventory management,” among other factors.

Cowen analyst Robert Stone this morning slashed his estimates on companies making silicon-based solar modules, noting that pricing has “taken another leg down since May.”

At the Intersolar conference in May, he notes in a research report, expectations were for a 15% sequential drop in pricing in Q2, but with Q3 showing a low-single digit change. But he now thinks that modules for tier one Chinese players could drop to $2/watt by year end, a slide of 15%-20% in the second half.

Solar shares, which in recent weeks have staged a ferocious rally, are getting hammered today, as investors take profits amid concerns about pricing and demand in the sector. As I noted last week, even some of the smallest and most speculative solar names had taken off, making the sector look more than a little frothy. But with some smaller solar players running into trouble - Hoku on Friday said it might run out of cash before it can complete a planned polysilicon factory - the stocks today are losing ground.

China Sunergy (CSUN) this morning posted worse-than-expected Q1 results, but repeated its full year outlook.

For the quarter, the solar cell manufacturer posted revenue of $37 million, down 14.4% sequentially and 51.9% year over year, and short of the Street consensus of $37.5 million. The company lost 33 cents a share on an adjusted basis, worse than the Street consensus loss of 26 cents. The company shipped 23.9 MW of capacity in the quarter, up 69.5% sequentially, but down 0.4% year over year. Gross margin in the quarter was -23.7%.