Understanding the Market | GCL TECH rises over 5%, strengthening photovoltaic production capacity control documents may be issued soon

GCL TECH rose over 5%, as of the time of writing, up 5.56% to HKD 1.33, with a transaction volume of HKD 606 million. In terms of news, according to China Securities Journal, relevant regulatory authorities may issue a document to strengthen the control of photovoltaic production capacity, which will include requirements for limiting the operating rates of existing capacities across the entire industry chain and strictly prohibiting new capacity. In addition, the main contract for polysilicon futures rose over 3% during the day, currently reported at CNY 50,885 per ton. Huatai Securities previously indicated that the company's granular silicon cost and energy consumption advantages are significant, and its market share may steadily increase. They are optimistic about the good effects of industry self-discipline and the gradual implementation of supply-side policies, which provide substantial room for the company's profit recovery