On Thursday morning, the Hong Kong stock market's photovoltaic sector saw a significant decline. As of press time, Xinte Energy (01799) fell by 5.22%, quoted at 9.07 HKD; Xinyi Solar (00968) dropped by 5.19%, priced at 3.47 HKD; Flat Glass (06865) decreased by 4.97%, at 12.98 HKD; and Fuyao Glass (03606) also declined by 1.16%, quoted at 55.3 HKD. The widespread drop in photovoltaic stocks is closely related to the U.S. election news.
Reportedly, Republican presidential candidate Trump announced victory in the 2024 presidential election and plans to cut large-scale federal spending, including green energy subsidies. Previously, renowned investor John Paulson mentioned in an interview that if appointed Treasury Secretary by Trump, he would work with Tesla CEO Musk to reduce spending, which includes eliminating the green energy subsidies in the Inflation Reduction Act. This act aims to promote the development of clean energy, and eliminating subsidies could affect the outlook for U.S. and global photovoltaic demand.
China Galaxy Securities stated in its latest research report that although the current photovoltaic industry chain is facing oversupply and pressure on corporate profits, the Chinese photovoltaic market continues to maintain steady growth. Data shows that from January to September 2024, China's new installations reached 160.88 GW, up 24.77% year-on-year, with full-year demand still expected to be supported. Galaxy Securities pointed out that the photovoltaic industry still needs to wait for the market to clear in the short term. It is projected that there might be a left-side layout opportunity in Q4 2024 or the first half of 2025, with the industry chain likely to rebound ahead of the fundamental bottoming out. For the photovoltaic sector, despite short-term market fluctuations, the long-term development outlook remains positive.
Amid market turmoil, investors need to closely monitor the potential impact of Trump's policies on the global green energy market and whether the Chinese market will subsequently increase policy support for clean energy.
