Selected solar stocks trended higher. At the time of writing, GCL NEWENERGY (00451) rose 6.76% to HK$0.79; Xinte Energy (01799) gained 5.22% to HK$7.66; GCL TECH (03800) increased 2.75% to HK$1.12; and Xinyi Solar (00968) was up 1.32% to HK$3.06.

The movement follows recent news that the State Administration for Market Regulation conducted compliance guidance on price competition order for the photovoltaic industry in Hefei, Anhui province. The regulator announced it will intensify product quality supervision and strengthen price and anti-unfair competition enforcement to severely crack down on illegal activities, effectively maintain fair market competition order, and promote the standardized, healthy, and sustainable development of the solar industry.

Huafu Securities believes this move aims to combat illegal practices such as price collusion in the short term to uphold fair market order. In the long run, it is intended to guide the industry away from homogeneous, low-price competition towards a healthy development track focused on technological innovation and premium pricing for quality products. This creates a more favorable environment for leading enterprises with technological and cost advantages and resonates with the recent market behavior of silicon wafer manufacturers jointly supporting prices. Industry competition rules are being reshaped, with high-quality development becoming the clear direction.