Polysilicon concept stocks rallied in the afternoon session. As of the latest update, GCL TECH (03800) advanced 11.48% to HKD 0.68, while XINTE ENERGY (01799) climbed 7.35% to HKD 4.165.

On the news front, the main polysilicon futures contract hit the daily limit up on August 3, surging 9% to 35,890 yuan per ton. Separately, on July 31, the State Administration for Market Regulation conducted price compliance guidance for the photovoltaic industry in Yancheng City, Jiangsu Province, directly targeting the long-standing "involutionary" competition. The initiative aims to drive the shift from "price competition" to "quality competition" among solar firms.

Analyst Li Xiangying from Guoxin Futures commented that the policy provides a short-term direct boost to the polysilicon market, helping to curb irrational price dumping. In the medium term, industry supply will accelerate its optimization, as regulators require leading companies to set a benchmark. Coupled with the implementation of cost standards, it will become increasingly difficult for businesses to rely on loss-making sales to capture market share. The pace of phasing out outdated and inefficient capacity will quicken, leading to a sustained contraction in ineffective polysilicon supply. Over the long term, industry pricing is expected to stabilize, and futures volatility is likely to decline.