HK Stock Market Move | Solar stocks continue to rebound as IRA energy subsidies are expected to be extended, and U.S. Shanxi Guoxin Energy Corporation installation forecasts may be revised upward.

Solar stocks continue to rebound. As of press time, Hainan Drinda New Energy Technology (02865) rose 14.99% to HK$13.73; XINYI SOLAR (00968) rose 7.06% to HK$2.2; FLAT GLASS (06865) rose 6.97% to HK$6.065; GCL TECH (03800) rose 5.51% to HK$0.67. On the news front, the U.S. midterm elections are basically settled, with Democrats expected to control both chambers of the U.S. Congress. The market generally believes that a Democratic victory provides a positive driver for the new energy industry, and that the locking in of Democratic advantages in congressional and local elections will greatly consolidate and extend the green energy subsidies and policy support under the Inflation Reduction Act (IRA). It is understood that the market had previously worried that Republicans would cut or even repeal the IRA clean energy tax credits. Sinolink believes that under the IRA framework, tax incentives for industries such as solar, energy storage, wind power, and SOFC are expected to remain intact, the medium- and long-term capital expenditure expectations of green power operators will be solidified, and U.S. Shanxi Guoxin Energy Corporation installation forecasts are expected to be revised upward.