Solar stocks surged collectively in Hong Kong trading. As of press time, XINTE ENERGY (01799) rose 4.45% to HK$8.45, XINYI ENERGY (03868) gained 3.94% to HK$1.32, XINYI SOLAR (00968) climbed 3.64% to HK$3.7, and FUYAO GLASS (03606) increased 2.02% to HK$9.59.

The rally follows recent industry developments. On October 28, CCTV2's economic program highlighted the solar sector's shift from price competition to innovation-driven growth. Zhu Gongshan, Chairman of GCL Group, and Zhong Baoshen, Chairman of LONGi Green Energy, were interviewed, with Zhu stating that 17 companies have largely agreed to form a consortium, expected to be finalized within the year.

SWS Research noted that polysilicon is central to curbing excessive competition, and the establishment of a joint platform will accelerate supply-side reforms. Since the anti-overcapacity initiative began, participation has expanded, and price recovery has been significant. In Q3 2025, polysilicon prices rose under regulatory requirements to avoid selling below cost, gradually surpassing breakeven levels.

The price rebound has significantly improved corporate profitability. For instance, DAQO NEW ENERGY reported a net profit of RMB 73.479 million in Q3 2025, ending five consecutive quarters of losses since Q2 2024. Similarly, GCL Technology returned to profitability in its solar materials segment during the quarter.

With policy guidance, supply-side reforms are advancing rapidly, and both industry pricing and profit margins have clearly bottomed out.