Xinyi Glass (00868) stock surged 5.38% in intraday trading, outperforming the broader market amid a rally in solar-related stocks. The company's shares were among several in the sector showing active trading, with GCL TECH, Flat Glass, and Xinyi Solar also posting gains.

The rally comes as China intensifies efforts to address "involution" in various industries, including the solar sector. The latest issue of Qiushi magazine highlighted plans to tackle disorderly low-price competition among enterprises and promote the orderly exit of backward capacity. This push for industry self-regulation and quality improvement aligns with the themes discussed at the recent 2025 China Silicon Industry Conference in Baotou.

Analysts are optimistic about the sector's prospects. Industrial Securities noted that the photovoltaic industry is at the forefront of "anti-involution" efforts, with strategies focusing on price increases and production limits. Galaxy Securities pointed out that while the global photovoltaic growth remains steady long-term, the industry has faced persistent supply-demand imbalances. They suggest that policy relief or technological advancements could accelerate supply-side clearing, potentially leading to significant valuation recovery for companies in the sector, including Xinyi Glass.