HK Stock Market Move | Optical communication concept stocks led the declines; companies say they have not received news of optical chip price cuts; US FCC policy rumors drag down share prices.

Optical communication concept stocks led the declines. As of press time, CREALIGHTS (01191) fell 13.27% to HK$113.1; TRIGIANT (01300) fell 7.73% to HK$3.045; YOFC (06869) fell 7.51% to HK$166.2; Zhongji Innolight (03308) fell 5.42% to HK$1,013. On the news front, according to China Securities Journal, rumors had been circulating in the market about optical chip price cuts, claiming that optical chip prices are already under pressure and that 1.6T-compatible optical chips face downward pricing pressure. Reporters separately called Suzhou Everbright Photonics, Henan Shijia Photons Technology, and Jiangsu Etern to verify. All three companies said they had not received any news regarding optical chip price cuts. Henan Shijia Photons Technology also said that this round of sector adjustment may stem from a research report published by Morgan Stanley on October 1 regarding US Federal Communications Commission (FCC) policy. It is understood that Morgan Stanley published a telecom and networking equipment industry research report on October 1. The bank's core judgment is that US FCC restrictions on Chinese-made optical modules are most likely to take effect in the 3.2T generation, but there is a "US content exemption" path. The overall landscape is positive for Lumentum and Coherent, rather than a comprehensive ban on Chinese optical module manufacturers. However, some market participants said the entire report is merely a policy conjecture.