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2025-08-01 10:34:30
GCL Technology (3800.HK) surged 3.4% in early trading on Friday. The company announced that major Chinese polysilicon producers are discussing the establishment of a 50 billion yuan (approximately US$7 billion) industry fund to acquire and eliminate approximately one-third of outdated production capacity to promote industry consolidation. The market generally believes this move will alleviate the overcapacity problem that has long plagued the industry and drive a rebound in polysilicon prices. According to Bernreuter Research, China's total polysilicon production capacity will reach 3.25 million tons by the end of 2024, meaning the plan could result in the withdrawal of approximately 38% of this capacity. In response to this news, both spot and futures polysilicon prices saw a significant increase, reflecting market optimism about improving supply and demand. The photovoltaic industry has been mired in price wars in recent years, with low-price competition putting pressure on corporate profits. As the 14th Five-Year Plan enters its final year, government regulatory policies have shifted significantly, from market-driven to direct intervention in industry restructuring. It is reported that relevant departments have been working with upstream silicon material companies to study specific plans for acquiring excess production capacity, aiming to accelerate industry clearance and lay the foundation for industrial upgrading during the "15th Five-Year Plan" period. 4. Analysts pointed out that if this capacity integration is successfully implemented, industry concentration will increase significantly, and the market voice of leading companies is expected to be further strengthened. As an industry leader, GCL Technology's leading position in technology reserves and scale advantages may be consolidated in the new round of industry reshuffle.
