HK Stock Market Move | Photovoltaic stocks across the board are declining, and new energy is fully entering the market as new policies are announced. The return on investment for new energy projects may change.

Photovoltaic stocks are all falling, as of the time of writing, XINYI SOLAR (00968) fell 3.87% to HK$3.48, FLAT GLASS (06865) fell 3.65% to HK$12.66, XINYI GLASS (00868) fell 2.02% to HK$7.29, XINTE ENERGY (01799) fell 2.05% to HK$7.64. On the news front, on February 9th, the National Development and Reform Commission, and the National Energy Administration issued a document deepening the market-oriented reform of the new energy grid price, promoting the comprehensive marketization of the new energy grid price. The "Notice" clearly proposes the "old and new division," and the new policy will be implemented for projects connected to the grid on and after June 1. It is generally believed that after the comprehensive marketization of the new energy grid price, the return on investment for new energy projects will change, which will affect the enthusiasm for investing in new energy projects. It is expected that there may be a rush to install new energy projects before June 1 this year. According to the Silicon Industry Association, the overall operation of the photovoltaic market was stable last week. According to the TrendForce report, during the holiday period, shipments of silicon materials were relatively stable following the order sequence from previous periods. If downstream production increases in March, there may be expectations of a price increase for silicon materials. Cell manufacturers have already completed stockpiling before the holiday, and prices for various specifications of N-type cells are temporarily stable, but inventory levels are once again rising. If downstream production increases in March, it may help alleviate the negative impact of supply-demand imbalance on prices.