HK Stock Market Move | GCL TECH (03800) rose nearly 5% in the afternoon. Tongwei Co., Ltd. plans to acquire Lihao Qingneng, marking a significant event in the integration of silicon material production capacity.

GCL TECH (03800) rose nearly 5% in the afternoon, up 4.96% to 1.27 Hong Kong dollars with a turnover of 357 million Hong Kong dollars as of the time of writing. On the news front, Tongwei Co., Ltd announced that it is planning to acquire 100% equity in Qinghai Lihao Qingneng Co., Ltd. by issuing shares and paying cash. Public information shows that Qinghai Lihao Silicon Material has the sixth production capacity in the industry. This acquisition plan by Tongwei Co., Ltd is considered a landmark event of a leading company actively promoting the integration of silicon material production capacity in the current industry background. Analysts point out that as the country further controls the increase in production capacity and promotes the exit of backward production capacity, the future production capacity of polycrystalline silicon in China will be strictly limited for a long time. With the continuous tightening of national energy consumption standards, the structural adjustment of polycrystalline silicon production capacity has become inevitable.