HK Stock Market Move | Photovoltaic stocks fell across the board, and the export tax rebate for photovoltaics is about to be fully canceled. Industry expectations for export growth have not been met.

Photovoltaic stocks are all falling. As of the time of publication, XINTE ENERGY (01799) fell by 7.13% to 5.34 Hong Kong dollars; Hainan Drinda New Energy Technology (02865) fell by 6.79% to 26.64 Hong Kong dollars; FLAT GLASS (06865) fell by 6.62% to 8.89 Hong Kong dollars; XINYI SOLAR (00968) fell by 4.78% to 2.99 Hong Kong dollars. On the news front, starting from April 1st, the 9% value-added tax rebate for exported photovoltaic products will be completely cancelled. According to reports from First Financial, on the eve of the policy taking effect, the industry did not see the expected "export rush." Export data for the entire industry chain in January and February remained stable, with silicon prices even falling to a new low of 40,000 RMB per ton. Prices of silicon wafers and cells continued to fall, reflecting continued low market sentiment and a lack of recovery in end demand. Some industry insiders believe that in the short term, the immediate impact of the cancellation of tax rebates, low product prices, and strong end-demand wait-and-see sentiment, among other factors, will make it difficult for photovoltaic companies' financial reports in the second quarter to be optimistic. The rapid decline in prices in the photovoltaic industry chain in recent times has not stimulated demand but instead exacerbated the wait-and-see sentiment, indicating that market clearance requires two key conditions to be met: a decrease in the certainty of inventory and a substantial recovery in end demand. However, as of now, there have been no clear signals of this happening.