HK Stock Market Move | Concept stocks of optical communication surged and then fell back. In the afternoon, YOFC (06869) dropped nearly 5% and TIME INTERCON (01729) fell over 3%.

In the afternoon, concept stocks of optical communication surged and then quickly fell back. As of press time, YOFC (06869) fell by 3.49% to 174.3 Hong Kong dollars; TIME INTERCON (01729) fell by 3.02% to 16.07 Hong Kong dollars; Cig Shanghai (06166) fell by 0.93% to 74.55 Hong Kong dollars. On the news front, on March 26th, Google launched the AI memory compression algorithm TurboQuant, causing fluctuations in the global storage chip sector. Cloudflare's CEO believes that it is expected to break the industry logic of computing power dependence through efficiency innovation, similar to last year's DeepSeek model. In addition, chip design company Broadcom recently stated that the company is facing supply chain constraints, including capacity limits at chip manufacturing partner TSMC. It is worth noting that UBS previously expressed concerns about the expansion of optical fiber production capacity, fearing that aggressive expansion could trigger a new round of oversupply. China Securities Co., Ltd. believes that after the last oversupply cycle, this round of manufacturers' expansion will be relatively rational. In fact, after 2020, the industry as a whole is in a state of clearance with few expansions; the fastest production expansion cycle for optical fibers will take over a year; high technical requirements for optical fiber products such as G654E, G657, multimode, and hollow core, are not something that new entrants can quickly overcome.