BOCOM INTL: Frequent policy announcements are beneficial for the photovoltaic industry. XINYI SOLAR (00968) and FLAT GLASS (06865) are the top choices.

BOCOM INTL released a research report stating that the meeting of the Financial Committee on July 1 emphasized governing enterprises' low-price disorderly competition according to law and regulations to promote the orderly exit of backward production capacity. CICC believes that the measures proposed this time are more targeted and have stronger operability and effectiveness. In addition, on June 29, an official media commentary article pointed out the internal issues in the photovoltaic industry and directly pinpointed the reasons for the difficulties. CICC believes that the intensive release of these policies reflects the increased attention of the central government to the current plight of the photovoltaic industry, and it has a deep understanding of the root causes of the difficulties and is determined to solve them. Subsequent substantive policies tailored to the situation are expected to be introduced, and the photovoltaic supply side is expected to see a turnaround. CICC is optimistic about the opportunity for a turnaround in the difficulties faced by leading photovoltaic manufacturers and recommends investing in XINYI SOLAR (00968), FLAT GLASS (06865), and GCL TECH (03800), all with a "buy" rating.