The Chinese government's attention to “involutionary” competition recently increased significantly, Ping An Securities issued a research report saying. China suggested to strengthen industry self-regulation to prevent “involutionary” vicious competition at the Politburo meeting in July 2024 for the first time, and mentioned that “involutionary” competition should be comprehensively remedied to regulate the behaviors of local governments and enterprises at the Central Economic Work Conference. Related NewsJPM: Higher Polysilicon Prices May Benefit Leading PV Glass FirmsThe sixth meeting of the Central Financial and Economic Affairs Commission in July 2025 emphasized that "enterprises should be regulated in accordance with laws and regulations against low-price and disorderly competition, guiding firms to improve their product quality and promote the orderly withdrawal of outdated output".Looking ahead, compared with the previous round of supply-side reform market experience, Ping An Securities believed that the current round of “involution” market condition is in the “expectation-catalyzed” stage. At present, enterprises in industries with lower capacity utilization rate and greater profitability pressure may have stronger motivation and willingness to reduce production on their own initiative. Related NewsPing An Securities Recommends Eyeing 3 Key Themes amid Spreading 'Anti-Involution' RallyThe broker recommended investors to pay attention to the power equipment industry represented by photovoltaic, the mid and upstream raw material industry represented by construction materials/ steel, as well as some of the light industry and textiles related industries.