Key Points
- The photovoltaic (PV) equipment index surged by 5.55% on July 8, 2025, with many companies hitting daily trading limits across mainland China and Hong Kong exchanges.
- This rally is driven by a sentiment against “Neijuan 内卷”, which signifies brutal, profit-crushing internal competition in the industry.
- China’s government, including the Central Finance and Economics Commission and the MIIT, is actively intervening to regulate “disorderly low-price competition” and address oversupply issues.
- Rumors of a government plan to acquire massive polysilicon stockpiles are also fueling investor confidence, building on previous similar market reactions.
- The industry’s rapid expansion is evident in silicon wafer production, which grew from 39.5 GW in 2017 to a staggering 885.2 GW in 2023, a 21-fold increase in six years.
The photovoltaic (PV) equipment sector just had a massive day, and the reason why points to a major shift in China’s industrial strategy.
On July 8, 2025, the solar industry didn’t just warm up; it went into overdrive.
The PV equipment index skyrocketed by 5.55%, crushing other sectors and signaling a huge surge in investor confidence.
This wasn’t just a minor bump. We’re talking about a broad-based rally with multiple companies hitting their daily trading limits.
Breaking Down the Solar Surge: A Look at the Big Winners
The gains were widespread, with key players on both mainland China and Hong Kong exchanges seeing incredible growth.
Here’s a quick who’s who of the companies that hit their daily limit up:
- Shouhang High-Tech Energy Technology (Shouhang Xinneng 首航新能)
- Tongwei (Tongwei Gufen 通威股份)
- Hongyuan Green Energy (Hongyuan Lü’neng 弘元绿能)
- Shuangliang Eco-Energy Systems (Shuangliang Jieneng 双良节能)
- Yijing Optoelectronic (Yijing Guangdian 亿晶光电)
- OJing Technology (Oujing Keji 欧晶科技)
And it didn’t stop there. Others saw gains of over 10%, including:
- Daqo Energy (Daquan Nengyuan 大全能源)
- Ainengju (Ainengju 艾能聚)
- Eneryu (Ailuonengju 艾罗能源)
The heat was also on in Hong Kong, where solar stocks popped off:
- Shunfeng International Clean Energy (Shunfeng Qingjie Nengyuan 顺风清洁能源)
- Solargiga Energy Holdings (Yangguang Nengyuan 阳光能源)
- Comtec Solar Systems (Kamudanke Taiyangneng 卡姆丹克 太阳能)
- Xinte Energy (Xinte Nengyuan 新特能源)
- GCL-Poly Energy Holdings (Xiexin Keji 协鑫科技)
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The Real Story: “Anti-Internal Competition” is Fueling the Market
So, what’s behind this sudden, explosive rally?
It all comes down to a powerful market sentiment against “Neijuan 内卷”—a term that perfectly describes the brutal, profit-crushing internal competition that has plagued the industry.
Think of it as a race to the bottom, where companies undercut each other on price to the point where nobody wins.
Now, the government is stepping in to stop the madness.
Here’s the breakdown of the official pushback:
- High-Level Directives: The Sixth Meeting of the Central Finance and Economics Commission made it clear: the government is now focused on regulating “disorderly low-price competition” and encouraging the phase-out of outdated production capacity.
- MIIT Steps In: China’s Ministry of Industry and Information Technology (MIIT) held a special symposium with PV manufacturing leaders. According to 21st Century Business Herald, this was the first meeting of its kind in over a year, and the main agenda item was simple: stop the Neijuan.
But Wait, There’s More: The Rumor Mill is Churning
- Central Finance and Economics Commission: Focusing on regulating “disorderly low-price competition” and phasing out outdated production capacity.
- MIIT Symposium: Held with PV manufacturing leaders to address “Neijuan” (internal competition), signaling official commitment to market stability.
- Polysilicon Stockpile Rumors: Persistent rumors of state-backed acquisition of excess polysilicon, reminiscent of a similar market surge in May, fueling investor confidence.
- Investor Confidence: Boosted by perceived government intent to stabilize the market and curb destructive competition.
Adding fuel to the fire are persistent rumors of a government plan to acquire massive polysilicon stockpiles.
As reported by Securities Times (Zhengquan Zhongguo 券商中国), these whispers suggest a state-backed intervention to stabilize the market by buying up excess supply.
This isn’t a new rumor—it first cropped up in May, triggering a similar collective surge in the PV sector. Where there’s smoke, investors are seeing fire.
Behind the Boom: The Insane Scale of Silicon Wafer Production
To understand why this “anti-competition” push is so critical, you have to look at the sheer scale of the industry’s expansion.
Let’s use silicon wafers as an example. Data from Dongwu Securities (Dongwu Zhengquan 东吴证券) paints a wild picture:
- In 2017, China’s silicon wafer production capacity was just 39.5 GW.
- By 2019, it crossed the 100 GW mark.
- By 2023, it exploded to a mind-boggling 885.2 GW.
That’s roughly a 21-fold increase in just six years. This rapid, unchecked expansion is the root cause of the hyper-competition.
While new expansion slowed in 2024, the market is still dominated by a few massive players:
- TCL Zhonghuan (TCL Zhonghuan TCL中环)
- LONGi Green Energy Technology (Longji Gufen 隆基股份)
- Jinko Solar (Jingke Nengyuan 晶科能源)
- JA Solar Technology (Jing’ao Keji 晶澳科技)
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Investor Takeaways: Analyst Outlook on the PV Sector’s Future
So, is this a temporary blip or a long-term turning point? Here’s what the analysts are saying.
The Optimistic View:
Pacific Securities (Taipingyang Zhengquan 太平洋证券) believes this is a massive signal. The high-level focus on cutting out internal competition is expected to accelerate the clearance of excess capacity and force companies to innovate faster. They argue the PV industry is at a major inflection point.
The Cautious View:
Huaxi Securities (Huaxi Zhengquan 华西证券) offers a dose of reality. While it’s great that the oversupply problem is finally getting official attention, talk is one thing, and action is another. They note that the “implementation of concrete follow-up measures remains crucial.”
The takeaway is clear: China’s solar industry is at a crossroads. A government-backed push to end the self-destructive price wars has ignited the market, but the future will depend on whether this policy translates into real, structural change for the photovoltaic (PV) equipment sector.
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