On November 5, the photovoltaic equipment sector triggered a wave of daily limit-ups, driving a collective rally across the entire new energy sector, with the underlying index of STAR Market New Energy ETF Huabao (159076) rising another 4%. Among the index constituent stocks, "photovoltaic equipment leader" Maxwell Technologies led the gains with a closing increase of over 16%, while Penghui Energy and Dike Shares both surged more than 11%, with Jingsheng Electromechanical, Jiejia Weichuang, and Haike Xinyuan among the top gainers.
What is the logic behind the collective surge of the new energy sector, represented by photovoltaics? First, it may be driven by external market sentiment. The results of the U.S. midterm elections are out, with the Democratic Party winning both the Senate and the House of Representatives. Previously, the market widely feared that the Republican Party would cut or even repeal clean energy tax credits under the Inflation Reduction Act (IRA). After the Democratic victory, given their policy leanings, tax incentives for photovoltaics, energy storage, and wind power under the IRA framework are expected to remain intact, and there may even be renewed efforts to increase new energy subsidies, with long-term demand growth still worth anticipating.
Second, domestic photovoltaic installation data shows a quarter-by-quarter upward trend. According to National Energy Administration data, China added approximately 38.76GW of new photovoltaic installations in the third quarter of 2026, representing a year-on-year increase of about 38% compared to 28.06GW in the same period of 2025. Looking back, new installations in the first half of 2026 totaled 72.07GW, with third-quarter single-quarter installation scale reaching more than half of the first-half total, clearly demonstrating the industry's quarter-by-quarter acceleration in installation pace during the year.
The latest commentary from the Huabao Fund Index Research and Investment Team stated that new energy is one of the core pricing anchors of the A-share market and a sector with prominent external-demand-driven characteristics in manufacturing. In terms of allocation pacing, attention should be paid to systematic valuation increases in the market. Currently, stabilizing market sentiment against further declines requires finding the greatest common denominator among bullish and bearish forces, namely the optimal solution for medium-to-short-term balanced gaming; from the perspectives of market performance, fundamentals, and capital structure, the U.S. midterm elections may become a direct catalyst for strengthening the "chosen" sector status of new energy (energy storage, photovoltaics).
Figure 1: Top 10 single-day gainers among constituent stocks of the STAR Market New Energy ETF Huabao (159076) underlying index. Figure 2: Six-month trend of the STAR Market New Energy ETF Huabao (159076) underlying index.
A latest research report from Galaxy Securities pointed out that the accelerating "anti-involution" process in the photovoltaic industry is driving industry average prices higher, and high-power module manufacturers will become the most obvious beneficiaries of this round of change. As downstream power station owners continue to raise requirements for conversion efficiency and long-term power generation returns, high-power module products with technological leadership advantages are gradually gaining market premiums, and these premiums will directly translate into corporate profit elasticity, with related leading manufacturers' performance expected to be the first to turn around losses.
Along with the recovery of the photovoltaic sector, market confidence across the entire new energy track is also rebounding. Recently, energy storage industry data has also performed impressively, with global energy storage battery shipments reaching 839.3GWh in the first three quarters of 2026, a year-on-year increase of 96.3%, nearly doubling. Leading power battery companies have completed first deliveries of long-duration energy storage system products, landing overseas GWh-level long-duration energy storage projects, and the industrial chain synergy effect is continuously being released.
At the terminal demand level, domestic new energy vehicle penetration reached 61.7% in September this year, and China's cumulative power and energy storage battery sales in the first three quarters reached 1,681.7GWh, a year-on-year increase of 57.6%, with lithium battery exports growing 36.4% year-on-year, indicating that the external circulation resilience of the entire new energy industrial chain remains ample.
20CM High Elasticity! Focus on STAR Market New Energy Core Assets
STAR Market New Energy ETF (159076) focuses on the mid-to-upstream segments of new energy, providing one-click exposure to the core tracks of lithium batteries + photovoltaics + wind power. The top ten holdings account for over 60%, with the top five constituent stocks including Sungrow Power Supply, CATL, Inovance Technology, EVE Energy, and Robotech, among other power industry leaders, making it easier to capture industry beta returns driven by the resonance of diversified demand drivers such as lithium batteries, photovoltaics, and new energy vehicles.
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