HK Stock Market Move | GCL TECH (03800) rises more than 5% in the afternoon, some silicon companies may continue to reduce production, institutions say they are paying attention to the production restrictions of enterprises.

GCL TECH (03800) rose more than 5% in the afternoon and, as of the time of writing, rose 3.75% to 0.83 Hong Kong dollars, with a turnover of 1.75 billion Hong Kong dollars. On the news front, the silicon industry branch announced that some polysilicon companies are willing to advance the centralized maintenance from the third quarter to the second quarter, or adjust the operating load temporarily according to the actual order situation. It is expected that the domestic polysilicon production in May will decrease to about 96,000 tons, a decrease of about 3% month-on-month, and the number of producing companies may be reduced to around 10 in the second quarter. Guotai Junan Futures Research believes that pre-holiday traders are clearing inventory at low prices, and downstream stocking willingness is lower than in previous years. The pressure from sluggish downstream demand after the holiday is still present, and in the short term, industrial silicon is difficult to break away from the bottoming rhythm due to negative feedback from the downstream. The adjustment degree of polysilicon production is relatively high, with insufficient warehouse receipts adding chips to the game. In the short term, there is limited downside, with range-bound trading being the main trend. Pay attention to the dynamics of corporate production restrictions, as well as whether new large-scale infrastructure or photovoltaic installation mandatory evaluation policies will be introduced, which may spark a new round of oversold rebounds.