On October 25th, A-shares in China saw a surge, with all major indices climbing. Notably, the photovoltaic equipment sector stood out, experiencing an impressive gain of over 9% throughout the day.

According to financial data provider Eastmoney, the photovoltaic equipment sector rose by 9.01%, leading all industries in A-shares. Among individual stocks, Xiangshang Technology and Ainengju saw remarkable increases of 30%. Leading companies in the industry, such as Longi Green Energy and Tongwei Co., even reached their daily limit with a 10% increase.

Li Longshan, an analyst at Lianhe Securities, explained that the strong performance of the photovoltaic equipment sector can be attributed to a couple of key factors. First, despite a recent rebound, the sector has faced deep corrections over the past few years, leaving it with significant valuation advantages and the potential for a rebound. Second, positive news regarding the industry has also played a crucial role, particularly concerning potential adjustments to U.S. tariffs on the photovoltaic industry from China.

Recent reports indicate that the U.S. Department of Commerce has initiated a review process that may lead to a partial rollback of the anti-dumping and countervailing duties on Chinese crystalline silicon photovoltaic cells.

In light of this, Shanxi Securities released a research report stating that while the U.S. review focuses on certain non-mainstream products, it suggests a loosening of tariff policies on Chinese photovoltaic module products. They noted that there is a possibility for further expansion of the exemptions for photovoltaic products in the future.

In terms of A-share performance for the day, by the market’s close, the Shanghai Composite Index stood at 3,299 points with a gain of 0.59%; the Shenzhen Component Index closed at 10,619 points, up 1.71%; the ChiNext Index reported 2,238 points, marking a rise of 2.93%; and the Beijing Stock Exchange 50 Index finished at 1,259 points, a slight increase of 0.08%.