The debt of 10 of China's largest solar energy companies totaled $17.5 billion, the report said. It particularly pointed out that LDK Solar is most likely to go bankrupt. The company was the first in East China's Jiangxi province to be listed on the New York Stock Exchange, but has been hit by substantial debt as orders shrank and prices dropped for its products.

Meanwhile, Suntech, another Chinese solar giant, is facing its biggest crisis ever. The New York listed company has lost 40 percent of its market value since revealing on July 30 that 560 million euros ($691 million) in bonds involved in securing the bank financing of a project in Italy may never have existed. Doubts have been raised that the company became a victim of a possible guarantee scam.

Suntech said last Monday it was investigating whether its partner GSF Capital had lied about contributing 560 million euros in German bonds as collateral to secure financing for solar projects in Italy via a jointly owned fund.