FLAT GLASS (06865) saw its stock plummet 6.16% during intraday trading on Thursday, as part of a broader decline in Hong Kong-listed solar stocks. The significant drop comes amid growing concerns over industry oversupply and reduced demand for solar glass products.

The solar sector witnessed widespread losses, with other major players also experiencing substantial declines. XINYI SOLAR fell 6.42%, XINTE ENERGY dropped 4.13%, and FUYAO GLASS slipped 1.95%. This sector-wide downturn reflects the challenging market conditions facing solar companies.

Industry analysts point to several factors contributing to the negative sentiment. In the solar glass segment, domestic module manufacturers have reduced their procurement of solar glass, showing high resistance to current prices and some opting to consume their existing inventories. Module production schedules have been revised downward, potentially leading to rising glass inventory in September. Additionally, the polysilicon market continues to face oversupply issues, with production remaining at high levels despite previous rumors of potential production cuts.

Market observers note that current fundamentals are not the primary focus for investors. Instead, attention is centered on expectations of anti-competition policies and the outcomes of an upcoming polysilicon industry self-discipline meeting. The implementation and clarity of future policies are likely to play a crucial role in determining both spot and futures price movements in the solar sector.