HK Stock Market Move | GCL TECH (03800) rose over 5% in the afternoon. The further downward space for silicon materials is limited. The market is paying attention to the follow-up supply-side policies.

GCL TECH (03800) rose more than 5% in the afternoon, with a gain of 5.38% as of the time of drafting, to HKD 0.98, with a turnover of HKD 3.02 billion. On the news front, the Silicon Industry Association held a conference on the development of the silicon industry chain in Leshan. China Securities Co., Ltd. pointed out that the industry is currently mainly focused on two issues: the resumption plan of silicon material production capacity, and the progress of the solar photovoltaic industry policies. In the short term, due to weakening demand and some expectations of resumption in the silicon material sector, we believe that the silicon material prices are still in the bottoming phase. However, the current prices are approaching the cash costs of top companies, and we expect limited further downside. The bank stated that from a policy perspective, the solar photovoltaic industry, as one of the key industries targeted for rectifying excessive competition in the country, has a clear direction for future supply side policies. If the policy is implemented with stronger-than-expected intensity and progresses smoothly, it may be able to reverse the current state of losses in the entire solar photovoltaic industry chain.