HK Stock Market Move | Photovoltaic stocks fell across the board, advancing the photovoltaic industry to prevent "internal competition." Institutions say electricity prices are affecting the stable profitability of new energy projects.

Photovoltaic stocks fell across the board. As of the time of publication, Triumph New Energy (01108) fell by 3.73% to HK$4.91; XINYI SOLAR (00968) fell by 3.31% to HK$2.92; FLAT GLASS (06865) fell by 2.51% to HK$10.08; XINTE ENERGY (01799) fell by 0.89% to HK$6.65. In terms of news, after the end of the rush for installation following the "531" policy, the demand for the photovoltaic industry weakened in the second half of the year, and prices along the industrial chain were under pressure. The sixth meeting of the Central Financial and Economic Committee has put the issue of "disorderly competition" on the agenda, explicitly proposing to accelerate the elimination of outdated production capacity and promote the industry towards high-quality development. The Ministry of Industry and Information Technology held a symposium for key manufacturing enterprises on July 3, with department leaders emphasizing the need to strengthen product quality, improve industrial structural efficiency, and promote the industry into an orderly and sustainable development channel. Guotai Haitong pointed out that under the new policy of 430, both the quantity and price of distributed photovoltaics are not guaranteed, and the uncertainty of profitability has greatly increased, ending the past "installing power stations and waiting for money" lying-down model. The policy of 531 has been introduced, promoting new energy to fully enter the market for trading. From the current settlement electricity prices for new energy participating in market transactions, they are generally much lower than the benchmark prices for coal-fired power. It is expected that after new energy fully enters the market, settlement electricity prices may further decrease. The bank also pointed out that the significant decline in electricity prices has become the biggest risk affecting the stable income of new energy, leading to a complete overturn of the original economic calculation model, and a significant decline in industry profitability.