Hong Kong Stocks Move: Solar Shares Fall Again as Institutions Say Democratic Victory Offers Limited Real Benefit to China's Solar Industry

Solar stocks have declined again, with DRINDA (02865) falling 9.42% to HK$13.37 as of press time, TRIUMPH NEW EN (01108) dropping 8.96% to HK$1.83, XINYI SOLAR (00968) sliding 4.15% to HK$1.965, and FLAT GLASS (06865) shedding 2.80% to HK$5.205.

On the news front, TrendForce stated in a report that with insufficient follow-through in new demand, downward pressure on prices across the solar supply chain is becoming increasingly evident. Polysilicon and wafer supply remain relatively loose, slightly exceeding downstream demand; solar cells and solar modules have seen little change recently, with overall trading sentiment subdued and the weak and stable pattern continuing.

In addition, the Democratic Party's victory in the U.S. midterm elections has triggered optimistic expectations and sentiment in the market regarding new energy. Ping An Securities pointed out that based on recent years of practice, whether under the Biden administration or the Trump administration, China's solar industry has faced significant trade protection policy impacts in the U.S. market, and we judge that changes at the U.S. government level offer limited real benefit to China's solar industry.