Solar stocks declined collectively. As of press time, XINTE ENERGY (01799) fell 7.36% to HK$8.31; FLAT GLASS (06865) dropped 6.54% to HK$11.72; XINYI SOLAR (00968) declined 4.45% to HK$3.65; FUYAO GLASS (03606) fell 2.46% to HK$74.

On the news front, according to National Energy Administration data, domestic solar installations in August totaled 7.4GW, declining 55.3% year-over-year and 33.3% month-over-month. Securities analysts point out that Q3 domestic terminal demand support remains weak, with production scheduling temporarily declining slightly. Policy guidance strongly addresses solar industry involution, with polysilicon becoming the main tool at current prices of 50+ yuan/kg. Silicon wafers and cells are following pricing trends, while modules await observation of terminal demand.

Research indicates that in September, prices for polysilicon, silicon wafers, cells, and solar modules all increased, but upstream price gains exceeded downstream increases. Solar glass prices have gradually recovered due to factors including leading companies' production cuts, reduced industry inventory, and supply contraction. Looking ahead, following earlier rush installations, the overall market lacks momentum. Centralized projects are driving installation demand. Considering terminal component price acceptance capacity and anti-involution measures' impact, solar industry chain prices are expected to stabilize.