GCL TECH (03800) saw its stock price soar by 5.43% in the pre-market session on Thursday, as investors responded positively to news of accelerated distribution of renewable energy subsidies in China. This development is expected to have a significant impact on the solar power sector, in which GCL TECH is a key player.

According to recent announcements, multiple new energy power generation operators have received concentrated renewable energy subsidy funds, with some companies reporting year-on-year increases of over 300% in subsidy receipts. This accelerated distribution of subsidies is seen as a potential policy tool to stimulate developer investment enthusiasm, particularly in the face of squeezed profitability due to market-oriented trading and rising costs in the industry.

The solar power sector, including GCL TECH, is expected to benefit from this development in several ways. First, the subsidy distribution is anticipated to provide support for domestic demand in 2026, potentially accelerating large-scale base projects. Second, industry chain prices and profitability have consolidated at the bottom, with "anti-involution" driving prosperity recovery. Analysts suggest that the sector is currently in a cyclical bottom layout window period, making it an attractive time for investment.

As a prominent player in the solar power industry, GCL TECH's stock price surge reflects investor optimism about the company's potential to capitalize on these favorable market conditions. The accelerated subsidy distribution is likely to enhance both investment capacity and motivation for photovoltaic projects, which could translate into improved financial performance for companies like GCL TECH in the coming months.