HK Stock Market Move | YOFC (06869) rose more than 16% and broke through the peak again. The optical fiber market continues to improve, with institutions pointing to a price increase trend exceeding expectations.

YOFC (06869) rose by more than 16%, reaching a high of 206.8 Hong Kong dollars, a new historical high. As of the time of writing, it had risen by 14.25% to 202 Hong Kong dollars, with a trading volume of 1.811 billion Hong Kong dollars. On the news front, American telecommunications company AT&T has announced that it will invest over 250 billion US dollars in the next five years to build infrastructure in the United States. The company stated in a declaration on Tuesday that the investment will focus on high-speed fiber optic connections and expanding wireless and satellite coverage. According to Open Source Securities, as of March 4th, the price of G.652.D single-mode optical fiber has increased from 18 yuan/kilometer before New Year's Day to the current 85-120 yuan/kilometer, a nearly 650% increase; the price of G.657.A1 single-mode optical fiber has risen from 23 yuan/kilometer to 115-135 yuan/kilometer, a nearly 487% increase; and the price of G.657.A2 single-mode optical fiber has increased from 35 yuan/kilometer to 210-230 yuan/kilometer, a nearly 557% increase. Open Source Securities pointed out that in terms of the magnitude and pace of price increases, the increase since New Year's Day has far exceeded the historical cyclical fluctuation range, indicating that the current situation is not a seasonal or regular cyclical adjustment, but rather a "quantity and price rise" market driven by an explosive growth in demand and supply-side capacity constraints. The firm believes that the "AIDC construction, DCI interconnection, and drone demand" have formed a triple resonance in fiber optic demand. From the supply side, optical fiber rods have long production cycles and high production difficulty, resulting in a situation of supply shortage or sustainability, leading to a continuous increase in fiber optic prices.