Core Viewpoint - The A-share photovoltaic sector has experienced a significant rebound since July 2, with notable increases in stock prices for companies like Yamaton and Yijing Photovoltaic, indicating a potential turning point after three years of decline [1][3]. Group 1: Market Performance - Since July 2, 2025, Yamaton and Yijing Photovoltaic saw stock price increases of 33% and 26% respectively over three trading days [1]. - Major companies such as Daqo Energy and Tongwei Co. also experienced gains exceeding 10% [1]. - The photovoltaic sector has faced a cumulative decline of over 50% since its peak in 2022, with some leading companies suffering losses of over 80% [3]. Group 2: Government Policy and Industry Outlook - The sixth Central Financial Committee meeting emphasized the need to regulate low-price competition and promote the exit of outdated production capacity in the photovoltaic sector [5][6]. - This policy direction is seen as a potential precursor to a supply-side reform similar to that initiated in the coal and steel industries in 2015 [7][10]. - The Ministry of Industry and Information Technology held a meeting focusing on the photovoltaic industry, where it was discussed to control the total production of polysilicon to not exceed 1.4 million tons by 2030, indicating a potential reduction of over 56% in capacity [8][9]. Group 3: Industry Dynamics and Investment Opportunities - The current market sentiment reflects a belief that the photovoltaic industry may be on the verge of a significant turnaround, with expectations of concrete policy implementations soon [15][19]. - A proposed alliance among six leading polysilicon companies aims to establish a 70 billion yuan fund to acquire and retire excess production capacity, which could facilitate a more orderly market exit for smaller firms [17][18]. - The current cash cost of polysilicon production for leading companies is around 27,000 to 35,000 yuan per ton, with a reasonable price expectation of 45,000 to 50,000 yuan to ensure profitability [25][26]. Group 4: Market Structure and Future Prospects - The global polysilicon market is heavily concentrated in China, with the top six companies accounting for over 80% of the market share [21]. - The integration of polysilicon production is expected to be less challenging compared to other segments, suggesting a higher potential for price recovery [22]. - The photovoltaic sector's overall valuation is currently at a historical low after three years of decline, indicating potential for valuation recovery as fundamental conditions improve [27].

Index Performance - The CSI A500 Index increased by 1.32% this week, closing at 4662.51 points on July 4 [4] - The average daily trading volume for the week was 18341.42 billion yuan, with a week-on-week decrease of 9.22% [4] Top Performing Stocks - The top ten stocks with the highest gains this week included: 1. Tian Shou Pharmaceutical (600521.SH) with a gain of 23.34% 2. Daqian Energy (688303.SH) with a gain of 22.18% 3. Junshi Biosciences (688180.SH) with a gain of 18.93% 4. Lepu Medical (300003.SZ) with a gain of 17.99% 5. Giant Network (002558.SZ) with a gain of 17.42% 6. Tongwei Co., Ltd. (600438.SH) with a gain of 17.32% 7. Hualing Steel (000932.SZ) with a gain of 15.37% 8. Pengding Holdings (002938.SZ) with a gain of 14.57% 9. Shenzhou Taiyue (300002.SZ) with a gain of 13.70% 10. Dongshan Precision (002384.SZ) with a gain of 13.36% [3] Underperforming Stocks - The ten stocks with the largest declines this week included: 1. Hengxuan Technology (688608.SH) with a loss of 33.40% 2. Huazhi Shihua (688120.SH) with a loss of 32.34% 3. Northern Huachuang (002371.SZ) with a loss of 22.87% 4. Weining Health (300253.SZ) with a loss of 8.77% 5. China Eastern Airlines (600115.SH) with a loss of 7.07% 6. Xingyuan Material (300568.SZ) with a loss of 6.99% 7. Cambricon Technologies (688256.SH) with a loss of 6.50% 8. Beiyi Innovation (603986.SH) with a loss of 5.93% 9. Jixiang Airlines (603885.SH) with a loss of 5.84% 10. New Zhou Bang (300037.SZ) with a loss of 5.49% [3] Fund Performance - This week, 38 CSI A500 funds collectively rose, with Pu Yin An Sheng leading at a 1.72% increase [5] - The top three funds by size were Huatai-PB (200.88 billion yuan), Guotai (181.5 billion yuan), and GF Fund (174.22 billion yuan) [5] Market Trends - A new trend has emerged in the Hong Kong stock market where A-share listed technology companies are increasingly pursuing secondary listings in Hong Kong [7] - The secondary listings provide diversified financing channels and enhance international market recognition for the companies [7] - The median discount rate for five companies planning secondary listings in Hong Kong is approximately -17% [7] - The core factors driving asset performance are expected to shift from external to internal influences in the second half of the year [7]

Group 1 - Supply-side changes are crucial for the photovoltaic industry's capacity clearance, and supply clearance is a decisive factor for the industry to recover in the second half of the year [1] - The photovoltaic sector has seen a collective rise in stock prices, with companies like Tongwei Co., Ltd. and Shuangliang Eco-Energy hitting the daily limit on July 2 [1][4] - The cash flow of silicon material manufacturers is under pressure due to continuous losses, with the average asset-liability ratio of photovoltaic companies rising [1][4] Group 2 - Silicon material prices have shown a slight recovery due to stable supply and demand, while silicon wafer prices have declined due to weak terminal demand [2][3] - The average transaction price of multi-crystalline silicon N-type raw materials increased by 0.87% to 34,700 yuan/ton, while N-type granular silicon remained at 33,500 yuan/ton [2] - The production of multi-crystalline silicon in June was approximately 102,000 tons, with a significant year-on-year decrease of 44.1% in the first half of the year [3] Group 3 - The reduction in production capacity is essential for reversing the current difficulties in the multi-crystalline silicon industry [4][5] - The asset-liability ratio of many photovoltaic companies has exceeded 70%, indicating significant financial pressure [4][5] - Companies like Tongwei and Daqo Energy have indicated that the supply-demand imbalance is unlikely to change in the short term, with silicon material prices expected to remain low [5] Group 4 - The global nominal capacity of multi-crystalline silicon is projected to reach approximately 3.04 million tons by May 2025, with domestic capacity accounting for about 97% [6] - The photovoltaic industry's supply-side adjustments are expected to deepen, with the multi-crystalline silicon sector likely to be one of the first to complete adjustments [6]

Market Performance - The Sci-Tech Innovation Board (STAR Market) index rose by 0.24%, closing at 984.95 points, with a total trading volume of 2.701 billion shares and a turnover of 90.146 billion yuan, resulting in a weighted average turnover rate of 1.52% [1] - Among the tradable stocks on the STAR Market, 365 stocks closed higher, with 5 stocks increasing by over 10% and 30 stocks rising between 5% and 10%. Conversely, 208 stocks closed lower [1] Turnover Rate Analysis - The distribution of turnover rates shows that 2 stocks had turnover rates exceeding 20%, 11 stocks had rates between 10% and 20%, 44 stocks had rates between 5% and 10%, 72 stocks had rates between 3% and 5%, 294 stocks had rates between 1% and 3%, and 165 stocks had rates below 1% [1] - The stock with the highest turnover rate was Xinyuren, which closed up by 4.80% with a turnover rate of 33.00% and a transaction amount of 594 million yuan. Huasheng Lithium Battery followed with a 15.36% increase and a turnover rate of 21.64% [1] Sector Performance - In terms of industry performance, the pharmaceutical and biotechnology sector had the most stocks with a turnover rate exceeding 5%, totaling 14 stocks. The electronics and power equipment sectors followed with 13 and 10 stocks, respectively [2] Capital Flow - Among the high turnover stocks, 34 stocks experienced net inflows of main funds, with the highest net inflows recorded for Bolite, Kexing Pharmaceutical, and Huiyu Pharmaceutical, amounting to 131 million yuan, 74.062 million yuan, and 60.026 million yuan, respectively [2] - Conversely, the stocks with the largest net outflows included Huicheng Co., Daqian Energy, and Sunshine Nuohe, with net outflows of 76.657 million yuan, 56.088 million yuan, and 45.416 million yuan, respectively [2] Leverage Fund Movements - A total of 47 stocks received net purchases from leveraged funds, with notable increases in financing balances for Tailin Micro, Daqian Energy, and Kexing Pharmaceutical, which saw increases of 108 million yuan, 6.698 million yuan, and 6.592 million yuan, respectively [2] - Stocks with significant decreases in financing balances included Rongchang Biological, Sunshine Nuohe, and Liyuanheng, with decreases of 115 million yuan, 21.505 million yuan, and 12.791 million yuan, respectively [2]

Market Overview - The Sci-Tech Innovation Board (STAR Market) index fell by 1.22%, closing at 982.64 points, with a total trading volume of 2.847 billion shares and a turnover of 93.68 billion yuan, resulting in a weighted average turnover rate of 1.60% [1] - Among the tradable stocks on the STAR Market, 105 stocks closed higher, with 3 stocks rising over 10% and 5 stocks rising between 5% and 10%. Conversely, 476 stocks closed lower [1] Trading Activity - The turnover rate distribution shows that 2 stocks had a turnover rate exceeding 20%, 7 stocks had a turnover rate between 10% and 20%, 51 stocks had a turnover rate between 5% and 10%, 84 stocks had a turnover rate between 3% and 5%, 305 stocks had a turnover rate between 1% and 3%, and 139 stocks had a turnover rate below 1% [1] - The stock with the highest turnover rate was Shengke Nano, which closed down 7.26% with a turnover rate of 27.87% and a transaction amount of 245 million yuan. The second highest was Kaiweite, which closed down 9.11% with a turnover rate of 23.34% and a transaction amount of 327 million yuan [1] Sector Performance - In terms of industry, the electronics and pharmaceutical sectors had the most stocks with a turnover rate exceeding 5%, each with 13 stocks [2] - Among high turnover stocks, 18 stocks experienced net inflows of main funds, with the highest net inflows seen in Daqian Energy (129 million yuan), Kexing Pharmaceutical (84.31 million yuan), and Rongbai Technology (82.93 million yuan) [2] Leverage Fund Movements - A total of 43 stocks received net purchases from leveraged funds, with notable increases in financing balances for Tailin Micro (200 million yuan), Ruikeda (8.35 million yuan), and Shengnuo Biological (7.50 million yuan). Conversely, significant decreases were observed in Rongchang Biological, Juhua Materials, and Guangda Special Materials [2] Notable Stocks - The following stocks had significant trading activity: - Shengke Nano: Latest closing price 26.56 yuan, daily change -7.26%, turnover rate 27.87%, net outflow -33.20 million yuan [3] - Kaiweite: Latest closing price 36.00 yuan, daily change -9.11%, turnover rate 23.34%, net outflow -19.64 million yuan [3] - Daqian Energy: Latest closing price 23.75 yuan, daily change +15.68%, turnover rate 7.23%, net inflow 129.11 million yuan [4]

Group 1 - The A-share market experienced slight fluctuations on July 2, with the Shanghai Composite Index closing at 3454.79 points, down 0.09% [1] - A500ETF Jiashi (159351) saw a trading volume of 2.784 billion yuan, ranking fourth among similar products in the market and second in the Shenzhen market [1] - The turnover rate for A500ETF Jiashi reached 18.24%, the highest among similar products in the Shenzhen market [1] Group 2 - The solar energy sector received two significant boosts: the U.S. "Big and Beautiful" Act was passed in the Senate, leading to strong performance of solar and wind stocks in the U.S. market [1] - Major domestic photovoltaic glass companies plan to collectively reduce production by 30% starting in July, which is expected to decrease domestic glass production to approximately 45GW [1] - As a result of these positive developments, key stocks in the solar sector saw substantial gains, with Daqo New Energy rising over 15%, and both Dongfang Risheng and Tongwei Co. increasing by over 10% [1] Group 3 - Despite a slight market adjustment, there are clear signs of capital positioning against the trend, supported by liquidity advantages and policy benefits, highlighting the strategic value of A500ETF Jiashi as a core asset allocation tool in the A-share market [1] - A500ETF Jiashi tracks the CSI A500 Index, composed of 500 stocks with large market capitalization and good liquidity, providing a balanced industry distribution and a higher proportion of new productive forces [2] - Investors can access quality core asset opportunities through the Jiashi CSI A500 ETF linked fund (Class A 022453; Class C 022454) [2]

Core Viewpoint - The photovoltaic sector has experienced a significant surge in stock prices, driven by industry-wide production cuts and favorable market conditions [1][4][6]. Group 1: Stock Performance - Since late June, photovoltaic stocks have been on a continuous upward trend, with many stocks hitting the daily limit [1]. - Notable performers include Daqo New Energy, which rose over 15%, and several other companies like Shuangliang Energy and Kstar New Energy, which also saw significant gains [1][2]. - In the Hong Kong market, Kstar New Energy increased by over 13%, while other companies like Xinyi Solar and Fulete Glass also reported substantial gains [2][3]. Group 2: Industry Dynamics - Major photovoltaic glass manufacturers plan to collectively reduce production by 30% starting in July to alleviate excessive competition and improve supply-demand balance [4][5]. - This reduction is expected to lower domestic glass production to around 45GW, addressing the current oversupply situation [4]. - The industry is responding to government policies aimed at curbing low-price competition and promoting sustainable development [5][6]. Group 3: Market Outlook - The photovoltaic industry is entering a phase of significant capacity expansion, leading to price declines and profit compression for major players [6][7]. - Despite the production cuts, component prices have not shown significant recovery, with silicon wafer prices continuing to decline [7]. - Analysts suggest that the market is in a "clearing deep water zone," indicating that inventory reduction and capacity adjustments are necessary for supply-demand improvement [6][7].

Core Viewpoint - The recent surge in polysilicon prices and related stocks is driven by multiple favorable factors, including government policies aimed at improving product quality and reducing low-price competition in the industry [2][5]. Group 1: Market Performance - Polysilicon prices opened high and surged over 5% in early trading, with significant activity in photovoltaic stocks, including notable gains in companies like Yamaton and Tongwei [1][5]. - The industrial commodity futures market showed strong bullish sentiment, with polysilicon, industrial silicon, and glass leading the gains [5]. Group 2: Government Policies - A recent high-level meeting emphasized the need to regulate low-price competition and promote the exit of outdated production capacity, which is seen as a major positive for the market [2][5]. - Domestic leading photovoltaic glass companies plan to collectively reduce production by 30% starting in July, which is expected to decrease domestic glass output to around 45 GW [4]. Group 3: International Influence - The U.S. "Big and Beautiful" bill passed in the Senate, which is expected to boost solar and wind energy stocks, with significant gains observed in related companies [3][7]. - The bill's provisions include the removal of tax obligations for solar and wind projects, further enhancing market optimism [7]. Group 4: Economic Outlook - Morgan Stanley has raised its growth forecasts for China's economy to 5.1% and 5.3% for the next two years, highlighting the dual drivers of technological innovation and policy support [8]. - The recent decline in the U.S. dollar index is expected to enhance the financial attributes of commodity futures, potentially increasing demand for these products [8].

Summary of the Conference Call on the Photovoltaic Industry Industry Overview - The conference call focuses on the photovoltaic (PV) industry, particularly the challenges and opportunities arising from recent policy changes and market dynamics [1][2][3]. Key Points and Arguments 1. **Market Sentiment Shift**: Recent articles from the People's Daily have shifted market sentiment from skepticism to optimism regarding long-term policy effects in the PV sector, leading to a rise in stock prices [2][6][8]. 2. **Challenges Faced**: The PV industry is currently facing multiple challenges, including external disturbances, weak domestic demand, and local protectionism, which have resulted in severe competition and impacted profitability across the supply chain [3][11]. 3. **Policy Measures for Mergers and Acquisitions**: The government is expected to implement policies that encourage leading PV companies to acquire the capacities of less competitive firms, with a focus on restructuring the industry to address losses across the supply chain [5][9]. 4. **Inventory and Supply Dynamics**: There is significant inventory pressure in the silicon material segment, with expectations of increased production leading to potential price declines. The industry may need to collaborate on production cuts to manage inventory levels effectively [10][11]. 5. **Future Policy Implementation**: Policies aimed at addressing the industry's challenges are anticipated to be introduced around August or September 2025, with execution expected in early 2026 [9][14]. 6. **Profitability Outlook**: The most competitive companies in the industry have cash costs around 30,000 CNY per ton. If silicon prices rebound to 60,000 CNY per ton, these companies could see substantial profit elasticity [3][15]. Additional Important Insights - **Investor Confidence**: The market's confidence has been restored following the People's Daily's acknowledgment of the industry's issues and the government's commitment to addressing them, which is crucial for long-term investment evaluations [6][7][8]. - **Operational Strategies**: The acquisition of less competitive firms will involve financial restructuring, including extending bank loans and joint investments from leading companies, with operational costs potentially passed on to end customers [9][10]. - **Technological Innovations**: New technologies in the PV sector, such as BC technology and high-efficiency Topcon technology, are highlighted as areas of potential growth and investment [15]. Conclusion The PV industry is at a critical juncture, with significant policy changes on the horizon that could reshape the competitive landscape. Stakeholders are advised to monitor the developments closely, particularly regarding policy implementation and market responses in the coming years [14][15].

Summary of Key Points Core Viewpoint - In July 2025, a total of 194 companies in the A-share market will face the unlocking of restricted shares, with a total unlocking volume of approximately 10.768 billion shares and an unlocking scale of 266.416 billion yuan, reflecting a month-on-month increase of about 6.59% and a year-on-year decrease of about 14.74% [1][2]. Company-Specific Summaries - Huada Jiutian has the largest unlocking scale, with an unlocking market value exceeding 30 billion yuan, specifically around 33.879 billion yuan, accounting for 51.69% of its total share capital [5][9]. - Daqo New Energy ranks second in unlocking scale, with 1.593 billion shares set to be unlocked, translating to an unlocking market value of approximately 31.739 billion yuan, which represents 74.24% of its total share capital [8][9]. - Guobang Electronics ranks third, with 331 million shares unlocking, amounting to an unlocking market value of about 19.472 billion yuan, which is 55.46% of its total share capital [9]. Industry-Specific Summaries - The electronic, electric equipment, and computer industries have the highest unlocking market values, with Huada Jiutian and Daqo New Energy leading the respective sectors [10]. - In the electronic sector, companies like Ugreen Technology, Tianyue Advanced, and Demingli have significant unlocking market values [10]. - The electric equipment sector is primarily driven by Daqo New Energy's large unlocking scale [10]. Anniversary Unlocking - Five companies will have anniversary unlockings in July, totaling approximately 240 million shares and an unlocking market value of about 11.361 billion yuan, with Ugreen Technology leading at around 9.519 billion yuan [14][15].