On July 25th, the two markets opened low and oscillated, with the photovoltaic sector leading the way against the trend. As of 10:40, Hangzhou First Applied Material increased by 9.97%, and Energy ETF (516160.SH) increased by 1.52%. According to China Energy Administration, the country's new photovoltaic installation reached 102.48 GW from January to June 2024, an increase of 31% year-on-year; of which 23.33 GW of new photovoltaic installations were completed in June, a year-on-year increase of 36% and a month-on-month increase of 23%. With the relaxation of the consumer red line to 90%, the progress of centralized projects connected to the grid is expected to accelerate. Due to fluctuations in electricity prices and policy adjustments, demand from household-end consumers has been relatively weak, and the growth rate has slowed somewhat; however, commercial and industrial projects have performed well, supporting distributed installations. Looking ahead to 2024, the industry chain prices are running at a low level, the end-user installation costs are improving, and the project return on investment is improving, which stimulates downstream installation demand. The traditional seasonal installation peak of domestic ground power plants is expected to come in the second half of the year, which may lead to a rapid increase in new photovoltaic installations in China. Looking ahead, it is recommended to focus on the allocation opportunities of Energy ETF (516160.SH).