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Chinese optical-module makers rebound after US curbs fears
Analysts said the proposed US rules would likely preserve existing supply chains, though China-US trade friction could hinder future AI data centre demand.
Shares of China’s leading optical-module makers rebounded after investors recalibrated expectations for potential US restrictions on Chinese optical transceivers, according to SCMP Economy. The stocks had fallen sharply early in the session before recovering.
Zhongji Innolight ended the day down 7.3% in Shenzhen and 6.7% in Hong Kong, while Eoptolink Technology fell 5.3% in Shenzhen. Suzhou TFC Optical Communication, by contrast, finished up 2.3% in Shenzhen.
SCMP Economy said the move followed a Reuters report that the Trump administration was drafting a measure through the Federal Communications Commission to bar new models of Chinese optical transceivers from the US market, with an intent to implement the rule this year.
The outlet reported that analysts played down the near term impact, arguing current supply chains would likely remain intact and that enforcement would face hurdles given the US reliance on Chinese manufacturing. SCMP Economy also noted that the Chinese firms did not immediately respond to requests for comment.