The State Administration for Market Regulation (SAMR) posted a notice on its website that it had initiated an antitrust investigation of the China Architectural and Industrial Glass Association, which is suspected of organizing some glass companies to form a monopoly agreement. The notice didn’t specifically mentioned which companies were involved in negotiating the agreement. Given the fragmented market structure, we believe it would be difficult to enforce the price coordination action. This news reports may impact sentiment and put pressure on shares of float glass makers, including Xinyi Glass [0868.HK] and China Glass [3300.HK]. But we believe any share price weakness could offer a buying opportunity.