China solar stocks rally on hopes of an industry turnaround

GCL Technology Holdings

05/09/2025 08:47

BEIJING, Sept 5 (Reuters) - China solar stocks rallied in Friday trading after a major polysilicon producer said the industry had hit bottom and regulators called for more measures to improve sector revenue.

Polysilicon is used to make the silicon wafers that convert sunlight into energy.

The stock price rally came amid intense focus on the government's campaign to reign in excessive, unsustainable competition among Chinese firms to increase prices in the solar sector.

Shares of polysilicon producer GCL Technology Holdings 3800.HK closed up more than 10% on Friday. Solar producer Trina Solar 688599.SS was up over 9% and Tongwei 600438.SS more than 6%.

The companies did not respond to requests for comment.

The chief financial officer of polysilicon giant Daqo New Energy Corp DQ said in a Bloomberg TV interview on Thursday that the polysilicon sector has already hit bottom and is recovering. He added that a plan to purchase and shut down over 1 million tons of the industry's capacity is moving forward with the support of the government.

The company should start to generate profitability before the end of the year, he said.

Adding to positive sentiment for the stocks was a plan issued by China's industry ministry targeting annual average revenue growth of at least 5% for the solar industry.

 (Reporting by Colleen Howe; Editing by Sharon Singleton)

 ((colleen.howe@thomsonreuters.com;))