Solar stocks experienced broad-based declines today, with XINTE ENERGY (01799) falling 4.18% to HK$7.79; FLAT GLASS (06865) dropping 3.86% to HK$10.96; XINYI SOLAR (00968) declining 2.1% to HK$3.27; and XINYI ENERGY (03868) down 2.34% to HK$1.25.

Goldman Sachs released a research report noting that mainland China's solar industry stock prices have risen since early July due to upstream price adjustments amid anti-involution measures. Domestic polysilicon prices increased approximately 40% from July to August, with companies providing guidance for further price increases in September to offset additional costs arising from production quota controls and capacity acquisitions. The firm believes the market has already priced in polysilicon at RMB 60 per kilogram, but this price level appears excessive considering weak demand prospects and accelerating cost reduction among tier-one companies.

CICC pointed out that after experiencing a rush of installations in the first half of the year and industry price support in the third quarter, operational pressures in the photovoltaic sector have been somewhat alleviated. However, debt pressures remain substantial, and supply-demand dynamics have not shown significant improvement, making "anti-involution" measures still necessary. Through joint efforts by various ministries, associations, and companies, "anti-involution" strategies for certain segments are gradually becoming clearer. While overall challenges remain considerable, the firm remains optimistic about the continued advancement of "anti-involution" initiatives and sector resilience.