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China Sunergy (CSUN) shares are trading higher this morning on better-than-expected Q3 revenues.

For the quarter, the China-based solar-cell manufacturer posted revenue of $80.1 million, down from $119 million a year ago, but up 14.3% sequentially, and ahead of the Street at $70.6 million. Adjusted non-GAAP loss of 3 cents a share fell short of the Street forecast of a profit of 2 cents a share. CSUN had a GAAP profit of 20 cents a share, due largely to a gain related to termination of a long-term supply contract.

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.