HK Stock Market Move | DONGYUE GROUP (00189) rose more than 5% with the concept of silicon exploding. Subsidiary Shandong Dongyue Silicone Material rose limit in early trading.

DONGYUE GROUP (00189) rose by over 5%, and at the time of writing, it has risen by 5.24% to HK$10.45, with a turnover of HK$1.91 billion. On the news front, this morning, the A-shares market saw a surge in the silicon concept stocks, with Shandong Dongyue Silicone Material hitting the limit up. It was reported that in the context of the "anti-overcapacity" in the photovoltaic sector this year, a leading polycrystalline silicon company is planning to form a consortium to eliminate some production capacity and clear the industry's accumulated debt. On November 6, sources close to the polycrystalline silicon storage and disposal matters revealed that the total investment from all parties may be between 20 billion yuan and 30 billion yuan, but specifics are still uncertain. Guosen previously pointed out that in the first half of 2025, the demand for organic silicon and fluorine-containing polymers market is weak with high competitive pressures and lower product prices and profit levels; however, refrigerants are seeing a rapid increase in prices and profit margins due to quota restrictions, leading to a significant increase in performance for DONGYUE GROUP in the refrigerant sector. Additionally, the company's fluorine-containing polymer industry chain is well-established with cost advantages. The bank believes that as the expansion cycle of fluorine-containing polymers nears its end, the company's product pricing will stabilize at the bottom, and the company has the advantage of scale and the industry chain, leading the industry in profit margins.