HK Stock Market Move | Optical communication concept stocks lead gains; Optical Expo confirms continued prosperity of optical interconnect; Institutions bullish on the sector's Q3 performance.

Optical communication concept stocks led the gains. As of press time, TRIGIANT (01300) rose 8.14% to HK$3.785; YOFC (06869) rose 7.55% to HK$199.5; Cig Shanghai (06166) rose 5.62% to HK$133.4; TIME INTERCON (01729) rose 3.81% to HK$19.35; Zhongji Innolight (03308) rose 3.20% to HK$1,290.0. On the news front, the 27th China International Optoelectronic Exposition (CIOE) was held at the SHENZHEN INT'L Convention and Exhibition Center from September 9 to 11. At the expo, 800G remained the main shipment volume, while 1.6T completed verification at multiple leading companies and began small-batch supply. As optical module iteration accelerates, solutions such as NPO (near-packaged optics) and XPO (pluggable co-packaged optics) made large-scale appearances, and supply-demand tightness is also transmitting step by step from optical modules upstream to chips, optical fiber, and testing equipment. Guosheng pointed out that with the Fed's rate hike now implemented, macroeconomic suppression factors have been lifted for the time being, and the optical communication industry's own high-prosperity logic will once again take the lead in pricing, with overall market sentiment improving. Coupled with expectations that Q3 large optical players' performance will continue to expand, the buying point for large optical names is gradually arriving. At the same time, this round of the passive components rally is not simply a valuation repair, but a change in fundamental logic, and Q3 performance is expected to show relatively high sequential growth elasticity. Therefore, large optical names and passive components can be allocated in a balanced manner, while also paying attention to names that underwent sufficient earlier adjustment and are at relatively low levels.