Solar stocks expanded their gains during afternoon trading. As of press time, GCL TECH (03800) rose 4.2% to HK$1.24; XINYI SOLAR (00968) climbed 3.45% to HK$3.3; FLAT GLASS (06865) advanced 2.14% to HK$10.5; and XINYI GLASS (00868) gained 1.76% to HK$8.66.

On the news front, several solar module manufacturers including Aiko Solar and Hoshine Silicon have demonstrated improved performance trends, achieving loss reduction or turning profitable in the first half of the year. Industry experts believe that against the backdrop of the solar industry's ongoing "anti-involution" process, as downstream markets gradually accept price adjustments in the polysilicon segment, component prices returning above cost lines is imminent. The entire industry maintaining low-capacity production and low gross margin levels may become the new normal.

Furthermore, the solar industry's push for "anti-involution" cannot focus solely on the manufacturing side, as the asset side plays an equally crucial role. Securities research indicates that this week's component bidding by China Resources and Huadian saw average transaction prices ranging from 0.7103-0.7461 yuan/W, representing a significant price increase that helps reduce manufacturing companies' loss levels.

The price increases represent a positive response from power station enterprises to anti-involution policies and will have a positive impact on market sentiment. However, caution is warranted as power station enterprises' returns face dual pressure from Document No. 136 and the manufacturing side. Future attention should focus on how policies will further stimulate demand, with carbon-related policies expected to accelerate.