XINYI SOLAR rose 5%, GCL-Poly increased by 10%, and two ministries pointed out the need to govern low-price competition in photovoltaic and other products according to the law

The Ministry of Industry and Information Technology and the State Administration for Market Regulation have instructed to legally govern low-price competition in photovoltaic and other products, and to guide local orderly layout of the photovoltaic and lithium battery industries. The photovoltaic and lithium battery sectors performed well this morning, with GCL-Poly Energy (03800.HK) opening up 2.3% and later expanding its gains, reaching a high of HKD 1.47, up 12.2% at one point, and the latest price reported at HKD 1.45, up 10.7%, with a transaction volume of HKD 1.448 billion. GCL-Poly New Energy (00451.HK) rose 13.3%.

XINYI SOLAR (00968.HK) increased by 5.2% to HKD 3.63, Fuyao Glass (06865.HK) surged 8% to HKD 12.09, and New Times Energy (01799.HK) soared 13.5%.

The Ministry of Industry and Information Technology and the State Administration for Market Regulation issued the "Action Plan for Stable Growth of the Electronic Information Manufacturing Industry 2025-2026," which states that high-quality development in fields such as photovoltaics should be achieved by breaking down "involution" competition and legally governing low-price competition in photovoltaic and other products. It guides local orderly layout of the photovoltaic and lithium battery industries and instructs localities to sort out production capacity.

The "Plan" mentions the implementation of quality management for photovoltaic modules and lithium battery products, in-depth implementation of documents such as the "Regulatory Conditions for the Photovoltaic Manufacturing Industry," strengthening the linkage with investment, finance, safety, and other policies, and promoting technological progress in the industry. It accelerates research on a safety recommendation catalog for energy storage battery products based on mandatory national standards. It supports associations and chambers of commerce in establishing industry self-discipline mechanisms, strengthening monitoring and early warning of key industries, and risk alerts, and orderly adjusting industrial scale.

KYG Securities stated that the current round of anti-involution in the photovoltaic industry is continuously advancing under top-down guidance and industry self-discipline. Since July, relevant meetings have been held intensively, and on August 19, a symposium on the photovoltaic industry was jointly held by the Ministry of Industry and Information Technology and six other departments, clarifying the norms for industry competition order and strengthening the determination to combat involution. Currently, positive signals have appeared in the market; in the polysilicon segment, the silicon material storage plan is being promoted in sync with industry self-discipline, and since July, transaction prices have continued to warm up. On September 1, polysilicon prices were further adjusted upward, with rod-shaped silicon rising to RMB 55 (the same below)/kg, and granular silicon priced at RMB 49/kg. On August 25, the bidding prices of candidates for the China Resources 3GW module centralized procurement project all exceeded RMB 0.7/watt, higher than the current mainstream level. Corporate operations remain under pressure; in the second quarter of 2025, all links in the main industrial chain are still generally losing money, with specialized companies performing better overall than integrated companies. Some battery module companies have improved their operations month-on-month, but overall they have not yet escaped losses. The silicon material and silicon wafer segments continue to suffer deep losses, with net profit margins for each company exceeding -10%. The auxiliary material segment's profitability outperforms the main chain, with most companies achieving break-even or slight profits. Leading enterprises with a dominant market share in various sub-sectors have stronger bargaining power and profitability. The high-level support for anti-involution in photovoltaics and clear direction has achieved phased progress. As the price transmission mechanism on the demand side gradually smooths out, and the supply-side silicon material storage plan steadily advances, the industry supply-demand structure is expected to welcome substantial improvement