In recent days, the A-share photovoltaic (PV) sector has seen a surge in market sentiment, with some PV companies' stock prices even reaching their highest levels in the past six months.

21st Century Economic Report journalists have noticed that from October 18th to 23rd, the Wind Photovoltaic Index (884045.WI) rose by a cumulative 12.84%. As of the close on October 23rd, the index stood at 3,072.45 points.

Since the A-share market's major boom at the end of September and the subsequent launch of the PV sector's market trend, the Wind Photovoltaic Index once touched 3,334.26 points on October 8th, setting a new high for the past six months. However, since then, the index has retraced, falling by 7.94% over eight trading days (October 8th to October 17th).

If the previous significant increase in the A-share PV sector was in sync with the overall rise in the A-share market, then the recent recovery in the sector's prosperity is due to the stimulation of positive industry signals.

On October 14th, the China Photovoltaic Industry Association organized a special symposium in Shanghai to prevent "involution-style" vicious competition within the industry. A total of 16 leading companies from the upstream and downstream of the industry chain participated, including Longi Green Energy, Tongwei Shares, Jinko Energy, Jinko Solar, GCL Technology, Aikosolar, Chint New Energy, and Gaojing Solar Energy, among others.

21st Century Economic Report journalists learned that the symposium was divided into two sessions, morning and afternoon. In the morning session, representatives from the participating companies discussed industry self-discipline conventions on "anti-involution competition, anti-dump below cost" and other content, orderly measures to resolve supply and demand imbalances, and clear excess capacity, as well as other suggestions for guiding the healthy and orderly development of the industry. In the afternoon session, the representatives further discussed the implementation details and work plans.

Additionally, according to the news released by the China Photovoltaic Industry Association that evening, entrepreneurs and representatives fully communicated and exchanged views on "strengthening industry self-discipline, preventing 'involution-style' vicious competition, strengthening market survival of the fittest mechanisms, and smoothing channels for the exit of backward and inefficient capacity" and reached a consensus on the healthy and sustainable development of the industry.

A few days later, the China Photovoltaic Industry Association published another article, stating that after summarizing, counting, analyzing, and organizing, the association calculated the cost of photovoltaic modules for October 2024 for reference by the entire industry and government regulatory departments to promote the healthy development of the industry.

According to the China Photovoltaic Industry Association's calculation, the current integrated enterprise N-type M10 double-glass photovoltaic modules, without considering depreciation, and without tax for silicon materials, wafers, and cells, the final module production cost (including tax but excluding transportation and miscellaneous fees) is 0.68 yuan/W.

However, the association also pointed out that "considering the current industry's severe oversupply and the fact that companies are operating at the limit to digest inventory, the above cost calculation does not include depreciation, so it is actually lower than the actual production cost, and even lower than the full cost including three fees. There are differences in individual costs among companies, but the range of differences is overall limited."The association has provided the industry with a reference cost price for current photovoltaic (PV) modules and has voiced that "bidding below cost to win contracts is suspected of being illegal." This has indeed released positive sentiment for the industry, which is eager to reverse the "price war," and has triggered active "positions" from industry companies.

On October 23, Kingpang Photovoltaic responded on the investor interaction platform, stating, "The action of the China Photovoltaic Industry Association (editor's note: announcing the calculated cost price of PV modules) is beneficial for maintaining the industry's ecosystem and fair competition order, strengthening industry self-discipline, and promoting the healthy development of the industry."

On October 15, Jinko Technology also expressed in response to the aforementioned symposium, "The company sent representatives to the meeting and will actively promote the implementation of the consensus reached at the meeting."

Today, the capital market has also spread the news that next month, relevant departments will issue documents to limit the capacity utilization rate of the main links in photovoltaics, thereby stimulating the photovoltaic sector to rise again.

As of the close on October 23, the stock prices of Haiyou New Materials, Daqo Energy, Haiyuan Composites, Hesheng Silicon Industry, Junda Shares, Flaretech, Tongwei Shares, and TCL Zhonghuan achieved a daily limit increase, while Aixu Shares, Jinko Technology, and other photovoltaic stocks touched the daily limit during the trading day.

Reporters from the 21st Century Economic Report noticed that on October 23, the stock prices of several photovoltaic stocks had already set the highest record in nearly half a year during the trading day, including Haiyou New Materials, Daqo Energy, Trina Solar, Kingpang Photovoltaic, Longi Green Energy, and Jinko Technology. Among them, the stock prices of Kingpang Photovoltaic, Haiyou New Materials, Jinko Technology, and Daqo Energy, these four photovoltaic companies, have increased by more than 30% in the recent four trading days.

In fact, although the above rumors have not been confirmed, looking at some of the recent news in the photovoltaic industry, the previously gloomy mood of the industry is being reversed.

Firstly, in terms of bidding for central enterprise module projects, the average bidding price of some projects is on the rise.

On October 22, the China Energy Conservation 2024 annual photovoltaic module framework agreement procurement was opened for bidding. The project procured 2.5GW of N-type TOPCon bifacial modules, with a total of 13 companies participating. The average bidding price of the project was 0.694 yuan/W, which increased month-on-month from September.

Secondly, there is good news from overseas trade frictions. According to the Caixin news on October 23, the official website of the U.S. Federal Government stated that the U.S. Department of Commerce started the changed circumstances review (CCR) on October 21, considering the partial revocation of anti-dumping duties and countervailing duties (AD/CVD) on Chinese crystalline silicon photovoltaic cells, and invited relevant parties to express their opinions. The products involved are certain small, low-power, off-grid crystalline silicon photovoltaic (CSPV) cells.Although most photovoltaic (PV) companies currently focus on high-power, large-sized products as their mainstream offerings, this news suggests the possibility of a relaxation in the subsequent "double anti" (anti-dumping and anti-subsidy) policies.

It should be noted that, at present, domestic PV module prices remain low, and whether the industry can adhere to the cost prices provided by the aforementioned PV industry association also needs to be tested.