Solar energy stocks continued their upward momentum on the Hong Kong Stock Exchange. XINYI SOLAR (00968) surged 6.59% to HKD 2.345, GCL TECH (03800) rose 5.74% to HKD 0.645, XINTE ENERGY (01799) climbed 3.61% to HKD 4.02, and FLAT GLASS (06865) increased 2.16% to HKD 7.1.

The rally followed an announcement that the State Administration for Market Regulation (SAMR) conducted pricing compliance guidance for the solar photovoltaic industry in Yancheng, Jiangsu Province, on July 31. The regulator aims to address "involution-style" competition, pushing companies to shift from price-based competition to quality-based competition, thereby promoting high-quality development in the sector. SAMR emphasized that solar firms must fully understand the current industry dynamics, proactively strengthen cost accounting management, establish robust pricing compliance systems, and conduct thorough self-inspections. The regulator urged companies to adopt compliant operations and rational competition, resist vicious low-price competition, and maintain market pricing order.

Huatai Securities noted earlier that detailed rules for three mandatory national standards in the solar photovoltaic industry have been released, with energy consumption grade requirements for polysilicon exceeding expectations. The brokerage highlighted that these mandatory standards will raise the rigid entry barriers across the four main production chain segments: polysilicon, wafers, cells, and modules. Huatai reiterated its positive outlook, anticipating that demand-side pressures in the second half of 2026 may ease, and that the mandatory national standards by 2027 will accelerate supply-side consolidation.