HK Stock Market Move | Some optical communication concept stocks rebound; industry benefits from triple drivers of AI computing power expansion; Citi and Jefferies both say impact of U.S. bill is limited.

Some optical communication concept stocks rebounded. As of press time, YOFC (06869) rose 5.53% to HK$164.1; Cig Shanghai (06166) rose 3.24% to HK$105.2; Zhongji Innolight (03308) rose 3.21% to HK$1,061. On the news front, U.S. senators from both parties recently proposed a bill restricting Chinese optical transceivers, naming Chinese suppliers including Zhongji Innolight and Eoptolink Technology Inc. Citi interpreted the move as not a comprehensive ban, with limited short-term impact. Jefferies noted that the just-concluded China-U.S. meeting released a positive atmosphere, with the meeting emphasizing "constructive strategic stability," making it highly unlikely that the U.S. will ban Chinese optical modules from entering private data centers, and the bill is currently more of a policy noise. A recent research report from Zhongtai pointed out that looking ahead, the optical communication industry is expected to continue benefiting from the triple drivers of AI computing power expansion, speed upgrades, and network architecture evolution. On the optical module side, 800G maintains high prosperity, 1.6T has entered a phase of large-scale volume ramp-up, and is evolving toward 3.2T and CPO/NPO; on the optical chip side, demand for 200G EML and high-power CW light sources is expected to continue rising; optical fiber demand is extending from traditional telecom networks to high-value scenarios such as AIDC, DCI, submarine cables, and CPO polarization-maintaining fiber; optical devices are further expanding from traditional module supporting components toward CPO, OCS, and high-density connectivity.