HK Stock Market Move | GCL TECH (03800) rose more than 4% in the afternoon. Antitrust restrictions curb involution, and inventory in the silicon material sector began to be digested in the second quarter.

GCL TECH (03800) surged over 4% in the afternoon. As of the time of reporting, it rose 3.50% to HKD 0.74, with a transaction volume of HKD 135 million. On the news front, data shows that by the end of the second quarter of 2026, inventory in the silicon material sector reached 22.6 billion yuan, a 13.0% decrease month-on-month, significantly down from 26 billion yuan in the first quarter of 2026. Soochow noted that reduced competition is driving a temporary price rebound, but constrained by antitrust regulations and an oversupply, silicon prices have fallen again; industry inventory has decreased by 13% month-on-month, indicating that destocking is starting to take effect. Huatai pointed out that they are optimistic about energy consumption constraints and industry self-discipline potentially driving a rebalanced supply and demand in the industry. The company expects that effective industry capacity will likely drop to 1.7 million tons by 2027, below the market equilibrium capacity of 1.8-2.0 million tons. Silicon prices have also seen some recovery; according to Infolink statistics, the average price of granular silicon on August 26 was 40 yuan/kg, a 29% increase compared to the end of July, which is helpful in supporting improvements in the company's photovoltaic materials business gross profit margin.