HK Stock Market Move | Photovoltaic stocks fell further in the afternoon session, with a sharp decline in solar installations in June. There is a risk of further weakening demand for polysilicon.

The decline of photovoltaic stocks widened in the closing session. As of the time of publication, XINTE ENERGY (01799) fell 4.41% to HKD 7.16, FLAT GLASS (06865) fell 3.72% to HKD 10.88, Fuyao Glass Industry Group (03606) fell 2.45% to HKD 57.65, and XINYI SOLAR (00968) fell 0.92% to HKD 3.24. On the news front, on July 23, the National Energy Administration released statistics on the national electricity industry for January to June, showing that the newly installed capacity for power generation by CECEP Solar Energy in June was 14.36GW, a 38% decrease year-on-year. Compared to May's 92.92GW, there was a significant 85% month-on-month decline, showing a cliff-like drop. Industry insiders pointed out that this phenomenon is directly related to the decline in installation rush after the "530 policy" node. Senior analyst at InfoLink, Fang Wenzheng, pointed out that the uncertainty of income brought by market-based electricity prices has made investors more cautious, with some of the bid-involved projects forced to terminate. CFI Futures released a research report stating that since July, the supply side of the silicon industry chain has been constantly releasing news, and the price of polysilicon as an energy product has also shown a significant increase. On the supply side, it is expected that the production of polysilicon in June-July will rise to over 100,000 tons, and in the medium to long term, attention needs to be paid to whether anti-inner-loop policies will limit the supply of polysilicon. On the demand side, the substantial increase in photovoltaic installation growth in January-May has overdrafted the demand for installation in the second half of the year. Considering the decline in photovoltaic installations in the second half of the year, there is a risk of further weakening demand for polysilicon. Overall, there is still pressure on the supply and demand reality of polysilicon, and attention should be paid to fund sentiment and the subsequent implementation of policies. If the policy implementation falls short of expectations, there is also a risk of reverse price fluctuations.