GCL Technology, one of China’s largest solar panel raw materials makers, and Yunfeng Financial Group, plan to take advantage of Hong Kong’s sustained stock market recovery to raise HK$6.6 billion (US$848.5 million) to fund their expansion.
GCL agreed to sell 4.74 billion shares to Infini Capital Management, a Hong Kong and Abu Dhabi-based firm owned by Tony Chin, the Jiangsu-based maker of polysilicon and solar wafers said in a Hong Kong stock exchange filing on Tuesday.
The selling price at HK$1.15 was 8.7 per cent lower than GCL’s closing price on Monday. GCL shares gained 4 per cent to HK$1.31 at 11.47am.
The Hang Seng Index has surged 33 per cent so far this year – making Hong Kong one of the world’s best performing stock markets – extending a recovery that has seen the market gain 74 per cent since early 2024.
GCL plans to use two-thirds of the proceeds to fund “supply-side reform to promote the structural adjustment of polysilicon production capacity”, and expand its capacity in making silane gas to help China displace imports.
Last month, Beijing announced policies aimed at curbing what it called “disorderly competition in the excess capacity and price war-inflicted solar equipment industry” by encouraging industry players to mothball unprofitable capacity.
