The A-share solar sector experienced a broad sell-off on November 12. By market close, Canadian Solar (688472.SH) plummeted over 14%, while Ja Solar Technology (002459.SZ), LONGi Green Energy (601012.SH), EGing Photovoltaic (600537.SH), and Shuangliang Eco-Energy (600481.SH) all dropped more than 6%.
The sudden decline appears linked to market rumors. Reports suggested that "silicon material and module alliance companies were rejected by authorities," with additional claims that Ja Solar executives privately told brokerages that "the capacity reserve platform has collapsed."
Ja Solar clarified to investors that no executive made such statements, dismissing the rumors as false. The company added it is not involved in the reserve platform and lacks details on its implementation.
The China Photovoltaic Industry Association (CPIA) issued an official statement debunking the rumors, labeling them "unverified misinformation." The CPIA emphasized its commitment to industry self-regulation and anti-overcapacity efforts under government guidance, promoting market-driven and legally compliant solutions.
The association vowed to combat "malicious short-selling and rumor-mongering targeting the solar industry."
The controversial "capacity reserve platform" is part of broader anti-overcapacity measures. In a late-October interview, GCL Group Chairman Zhu Gongshan revealed that 17 leading solar firms, including LONGi and TCL, had signed agreements for joint capacity reserves. This announcement previously boosted sector sentiment.
Market attention remains fixed on the platform's progress. Sources indicate potential funding of 20-30 billion yuan for polysilicon reserves, with plans for a 70-billion-yuan restructuring fund using leveraged debt financing.
Some solar firms already show operational improvements amid easing price pressures. LONGi reported 181.01 billion yuan in Q3 revenue, marking consecutive quarters of reduced losses. Ping An Securities notes Q3 profit recovery among top solar players, attributing it to stabilized supply chain prices and reduced inventory write-downs. Silicon material segments showed notable margin expansion.
Kaiyuan Securities highlights initial anti-overcapacity successes, forecasting significant upstream Q3 loss reductions. Key focus areas include: supply-side measures like reserve platform implementation and production controls, and demand-side factors including "15th Five-Year Plan" installation targets and export policy enforcement. These coordinated efforts may accelerate supply-demand rebalancing and support module price recovery.
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