Solar energy stocks gained broadly, with XINYI SOLAR (00968) rising 8.15% to HK$3.45, FLAT GLASS (06865) climbing 6.88% to HK$10.88, GCL TECH (03800) advancing 6.96% to HK$1.23, XINTE ENERGY (01799) increasing 6.6% to HK$6.95, and TRIUMPH NEW EN (01108) gaining 5.12% to HK$4.93 as of press time.

On the news front, following the solar "installation rush" triggered earlier this year by the National Development and Reform Commission and National Energy Administration's notice on deepening market-oriented reforms for new energy grid-connected electricity prices, the solar module market is experiencing shortages and price increases again in August.

Multiple distributors indicated that this round of shortages and price increases differs from the earlier "installation rush" period. During the rush period, the main drivers were strong downstream demand and urgent delivery requirements. However, current downstream module demand has not increased significantly. The core reason for price increases stems from upstream polysilicon material price rises under the "anti-involution" backdrop, combined with limited production capacity for certain models that cannot meet timely delivery requirements.

Additionally, 152 energy storage companies have voiced opposition to "involution," covering supply chain units including lithium-ion batteries, flow batteries, and sodium-ion batteries, which is expected to gradually form industry consensus and self-discipline.

CITIC Securities previously noted that solar energy has become a representative anti-involution industry. Under recent efforts to address below-cost pricing, the supply chain's pricing has achieved initial success, with silicon materials, wafers, and cells successfully implementing price adjustments. The focus now shifts to monitoring price transmission in the module segment.

The firm believes that under the "anti-involution" policy direction, the industry's profit center is expected to return to reasonable profitability levels over the medium to long term.