CLSA’s research report wrote that the recent momentum in solar stocks stemmed from some positive signals on the supply side policies. This included a meeting held by Chinese President Xi Jinping on July 1, underscoring the legal governance of enterprises to prevent low-price disorderly competition, guiding companies to improve product quality, and promoting the orderly exit of outdated production capacity; as well as standardizing government procurement and bidding. CLSA stated that its view on solar sector remained unchanged. It maintained a cautious stance towards solar demand, with the supply side still awaiting more catalysts or supply-side policies to aid the industry's recovery. The broker expected key measures related to energy consumption control, conversion efficiency, and production quotas to be moderately relaxed. Related NewsDaiwa Negative on CN PV Industry, Reiterates Underperform for FLAT GLASS/ XINYI SOLARIn the solar industry, CLSA believed that polysilicon material leader GCL TECH (03800.HK) +0.040 (+3.810%) Short selling $90.18M; Ratio 14.200% and solar glass leader XINYI SOLAR (00968.HK) +0.020 (+0.727%) Short selling $59.12M; Ratio 21.071% , along with FLAT GLASS (06865.HK) -0.020 (-0.204%) Short selling $13.15M; Ratio 17.617% , will become the key beneficiaries of solar supply-side policies due to higher industry integration and steeper cost curves. CLSA's target prices and ratings for the aforementioned companies: XINYI SOLAR (00968.HK) +0.020 (+0.727%) Short selling $59.12M; Ratio 21.071% | HKD4 | Outperform | Update Date: December 10, 2024FLAT GLASS (06865.HK) -0.020 (-0.204%) Short selling $13.15M; Ratio 17.617% | HKD10 | Outperform | Update Date: April 30, 2025GCL TECH (03800.HK) +0.040 (+3.810%) Short selling $90.18M; Ratio 14.200% | HKD1.3 | Outperform | Update Date: March 31, 2025(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-04 12:25.)Related NewsCLSA: Solar Sector Sentiment Continues to Improve; GCL TECH/ FLAT GLASS/ XINYI SOLAR (00968.HK) Favored