Multiple bearish factors hit simultaneously! The photovoltaic and power sectors plummeted across the board, with popular stocks hitting the daily limit down in bulk.

On March 30, the persistently active power sector suffered a sharp selloff. Popular stocks such as Huadian Liaoneng (600396.SH), Huadian Energy (600726.SH), Yu Energy Holdings (001896.SZ), among others, all hit their daily trading limit lower. More than 50 stocks across the entire market fell by over 5%, and the Guangfa Power ETF (159611) dropped 3.74%.

The photovoltaic sector also saw broad-based declines. Maysun Photovoltaics (300751.SZ), a popular PV stock, plunged 19% intraday and closed down 15.78%. Tongdian Dongci (002056.SZ) fell 7.79%. JinkoSolar (688223.SH), Laplace (688726.SH), Jieshi Weichuang (300724.SZ), Tongmei Shares (688032.SH), and several other stocks dropped more than 6%. The PV ETF (159857) fell 3.51%.

Power shares previously benefited from market sentiment sparked by “computing and power cooperation” and grid upgrades, but that sentiment has since faded.

Broker research reports show that for thermal coal, as of March 27, port coal prices increased by 26 yuan/ton week on week to 761 yuan/ton, setting a new high for the year. Regarding power plant inventories, last Saturday the six major power plants’ inventory decreased by 3.91 million tons week on week to 12.75 million tons. This was 7.75 million tons less than the same period last year. Although daily consumption increased, with procurement maintaining a rigid-need schedule, inventory drawdowns at power plants were clearly evident. On the demand side, non-power demand improved somewhat for coal-to-chemicals due to the Middle East situation. In the off-season for thermal power, most power plants mainly rely on consuming raw-material inventories.

The State Grid Shandong Electric Power Company released data on the power market for February 2026, showing that in February the price focus in the spot market moved lower compared with January. The highest price still remained within the 0.38-0.40 yuan/kilowatt-hour range, but the lowest price saw a clear “cliff-like” drop, with electricity prices in some periods approaching zero.

Previously, zero/negative electricity prices had appeared repeatedly in power markets across multiple regions. During this year’s Spring Festival, the spot market clearing prices in several provincial grid companies, including Henan, Hebei, Shandong, Shanxi, and Sichuan, touched the lower bound.

For photovoltaics, multiple concerns are pressuring the market.

SpaceX CEO Gwynne Shotwell said in a March 26 interview with Time magazine that the final upper limit for Starlink broadband satellites is 15,000–20,000, down from the previously applied-for 30,000, which has raised investors’ concerns about PV equipment demand, leading PV equipment stocks to underperform and fall the most. In addition, there are reports in the market that the relevant departments may consider imposing export controls on domestic PV equipment. Meanwhile, the market also fears that PV industry performance in the first quarter may fall short of expectations.

The final window for export tax rebates is about to close. On January 9, the Ministry of Finance issued the “Announcement on Adjusting Export Tax Rebate Policies for Photovoltaic and Other Products.” Starting from April 1, 2026, export VAT tax rebates for PV and other products will be canceled.

According to The Paper (Pengpai News), after the export tax rebate policy was released, overseas demand did not deliver the “rush-loading pulse” as strongly as some market distributors claimed. For the industrial chain, the effect of destocking was evident. However, in the first quarter, the operating rates of major companies were not boosted significantly as a result.

According to data released by SMM on March 30, component prices in China last week temporarily remained stable. Some local quotes were raised, but the market’s prevailing transaction prices have not changed yet. As the export tax rebate window is set to close, overseas orders have clearly decreased. Domestic distributed projects are currently less willing to accept the existing component prices. Under a weak state of domestic demand, the difficulty of holding firm on component prices is expected to increase. In April, China’s planned component output is expected to drop significantly. Even among those component manufacturers, some will still produce based on earlier orders. If earlier orders reach the bottom, component output is still likely to show a downward trend.

InfoLink said in an analysis last week that signed volumes for polysilicon have continued to decline. The core reason is that weak demand expectations for April to May have affected purchasing sentiment, causing procurement in the midstream to continue to slow down. Only a small number of manufacturers are replenishing limited stock. In the short term, there is no rigid demand. There have even been cases where orders that were previously agreed upon start to be canceled and renegotiated. Buyers’ willingness to accept polysilicon prices above 40 yuan has dropped sharply. For polysilicon companies, conditions in April to May will be even more severe. Shipments have been at low levels for several months; overall polysilicon inventories continue to accumulate. Some manufacturers can no longer bear the pressure and are being forced into passive low-price sales to generate cash inflows.

The silicon industry branch of the China Nonferrous Metals Industry Association believes that the current polycrystalline silicon industry is facing severe tests, and the market clearing process may be more complicated than expected. For the market to stabilize in the future, it is not only necessary to see a definite decline in inventory, but also to wait for a real rebound in end-market demand and the gradual rebuilding of market confidence. The current sharp and fast fall in prices will not only fail to stimulate demand, but will also intensify the wait-and-see and risk-avoidance sentiment across the entire industrial chain, extending the time needed for the market to bottom out.