Solar Sector ETF Sees Over 15% Gain Amidst Continued Growth and Global Electricity Shortages

The photovoltaic sector continues to advance against internal competition, while the logic of electricity shortages overseas strengthens. The Guangfa Photovoltaic Leader ETF (560980), the only fund tracking the Photovoltaic 30 Index, saw an intraday increase of over 3%, marking a cumulative rise of more than 15% over the past 11 days.

As of January 19, 2026, 11:00 AM, the CSI Photovoltaic Leader 30 Index surged by 2.34%, while the Guangfa Photovoltaic Leader ETF (560980) rose by 2.64%, hitting intraday highs of over 3% and aiming for an 11-day streak of gains.

Recently, Ideal Wanlihui Semiconductor Equipment (Shanghai) Co., Ltd. achieved a milestone in advanced photovoltaic technology integration with the completion and successful operation of its AI demonstration line for ultra-thin flexible heterojunction (HJT) batteries designed for space environments. This platform has successfully produced the first batch of P-type ultra-thin flexible HJT batteries, meeting both electrical and mechanical performance targets.

Despite the rapid growth of photovoltaic installations, the construction of electricity grids has lagged, preventing a significant amount of clean energy from being effectively integrated into the grid or delivered to demand centers. A substantial increase in grid acceptance capacity will directly stimulate the investment and development of downstream photovoltaic power stations. Additionally, the State Grid announced that during the 14th Five-Year Plan period, its operational area will see an average addition of approximately 200 million kilowatts of wind and solar energy installations annually. This indicates that the next five years will be a booming period for wind and solar capacity, with energy storage and other regulatory resources also expected to see explosive growth.

On the policy front, the Ministry of Finance and the State Administration of Taxation jointly released an announcement regarding the adjustment of export tax rebate policies for photovoltaic and other products, implementing differentiated adjustments for the value-added tax export rebates on photovoltaic and battery products. According to Joint Credit, this policy signifies a crucial shift in the photovoltaic manufacturing sector from being subsidy-driven to market-driven. In the short term, it will increase export costs for companies and accelerate the exit of smaller capacities lacking core competitiveness, leading to structural reshuffling and profit challenges in the industry. However, in the long term, this move will push the industry to break away from low-price competition dependency, channeling resources toward leading high-efficiency capacities and enhancing industry concentration.

Furthermore, the Ministry of Commerce decided to extend anti-dumping duties on multi-crystalline silicon from the U.S. and South Korea for five years, aiming to consolidate the autonomy of core raw materials in China’s photovoltaic supply chain. By maintaining high tariffs, China has created a stable development environment for its domestic multi-crystalline silicon industry, effectively shielding it from external low-price shocks. This action not only addresses reasonable demands from the domestic industry but also strengthens the strategic layout of leading the entire photovoltaic supply chain from the upstream material end during a critical period of global energy transition, helping to ensure the security of the domestic photovoltaic supply chain.

According to a report by Guangfa Securities, the ongoing effort to combat internal competition in the photovoltaic sector is being bolstered by technological innovations. Supply-side adjustments are underway, as the industry faces a decline in production, which is expected to further strengthen the reversal of internal competition. As reported by Century New Energy Network, on December 26, the State Administration for Market Regulation disclosed issues and risks related to price violations in the photovoltaic sector, emphasizing the importance of addressing ‘inward competition’ in the industry. We believe that under the further requirements of the State Administration for Market Regulation, efforts to combat internal competition will likely be enhanced, leading to improved profitability in the industry. We are optimistic about profit improvements in the downstream component segment of the photovoltaic supply chain by 2026.

In terms of technological innovation, cost reduction and efficiency improvements are expected to drive early reversals in profitability, with the industrialization of BC technology likely to accelerate. Bank of China Securities believes that the current main investment theme in photovoltaics is still ‘combating internal competition.’ Several multi-crystalline silicon companies have engaged in discussions with the State Administration for Market Regulation, which may help control upstream silicon material prices and shift profits toward downstream battery and module segments. Additionally, due to rising silver prices, the landscape of the battery segment is continuously optimizing, and the pace of introducing cheap metals is expected to accelerate. In the context of increasing demand for high-power modules, manufacturers are intensifying their efficiency demands, accelerating the market-driven clearing process. We recommend paying attention to structural opportunities in adhesive films, silicon materials, battery modules, perovskites, and BC technology.

In terms of ETFs, as of January 19, 2026, 11:00 AM, the CSI Photovoltaic Leader 30 Index climbed by 2.34%, with the Guangfa Photovoltaic Leader ETF (560980) rising by 2.64%, peaking at over 3% intraday, thus aiming for an 11-day streak of gains. The top ten weighted stocks make up 71.84% of the index, with the largest holding, Tebian Electric Apparatus, increasing by 5.84%, followed by Maiwei Co. with a 5.10% increase, along with other stocks such as Chint Group and TCL Technology also experiencing gains.

The Guangfa Photovoltaic Leader ETF (560980) is the only product in the market that closely tracks the CSI Photovoltaic Leader 30 Index, selecting 30 large and profitable leading companies involved in the photovoltaic power generation industry from the Shanghai and Shenzhen stock markets, thus comprehensively reflecting the performance of core assets in China’s photovoltaic industry.