GreenergyDaily

Sep. 16, 2025

GCL Technology Holdings Ltd.’s stock rose after the Chinese company announced a share sale to help fund efforts to reduce overcapacity in the solar polysilicon sector.

Its shares gained as much as 5.6%. The HK$5.5 billion ($700 million) capital raise followed months of planning by GCL and other top polysilicon producers to set up a fund to retire production units of the key material used for solar panels and semiconductors.

Polysilicon producers will hold another meeting this week, Shi Zhenwei, an analyst with Shanghai Metals Market, said at a live-streamed conference in Jiangsu on Tuesday. More policies related to reducing capacity are expected to be implemented in the next few months, with impacts becoming apparent in the fourth quarter, he said.

Deutsche Bank AG analysts said GCL remained its top pick among solar manufacturers in a Tuesday note, as the company “is a key beneficiary of solar sector ‘anti-involution’ (or supply-side reform) and we also like its long-term cost advantage in the polysilicon industry.”

GCL said it would earmark a portion of the funds raised to establish a capital reserve for supply-side reform to restructure polysilicon production capacity, according to an exchange filing.

The company agreed to sell 4.7 billion shares at HK$1.15 each to Hong Kong-based hedge fund Infini Capital Management, according to a bourse filing on Tuesday. The price was at an 8.7% discount to Monday’s close of HK$1.26.