Solar stocks extended their declines, with shares of Lens Technology (06613) falling 4.85% to HK$18.62 as of press time, while Drinda (02865) shares dropped 4.10% to HK$10.52.

Flat Glass (06865) shares declined 2.43% to HK$5.21, and Xinyi Solar (00968) shares fell 2.09% to HK$1.87.

On the news front, according to Jiemian, on October 11, leading domestic solar companies including Tongwei and GCL held a closed-door meeting in Hangzhou to further advance the industry's anti-involution initiative.

The meeting further formed an implementation plan for capacity restrictions, proposing to use market-based adjustment mechanisms to encourage companies to independently coordinate and proactively suppress their own production capacity based on total market demand, and set clear price floors for polysilicon and module segments.

Public data shows that from January to August, national new solar installations reached 97.19GW, down 57.86% year-on-year; in August alone, new additions were 11.04GW, down 21.6% month-on-month but up 50% year-on-year.

Soochow Securities stated that solar demand is notably weak, prices remain sluggish, demand is set to decline for the first time in 2026, and the profitability inflection point remains unclear. Space-based solar power could bring incremental opportunities, benefiting equipment and auxiliary materials sectors.