Changes in Hong Kong stocks | Multiple disadvantages hit the optical communication concept stock Changfei Optical Fiber & Cable (06869) fell more than 17%, Zhongji Xuchuang (03308) fell nearly 12%

The Zhitong Finance App learned that optical communication concept stocks fell sharply across the board. As of press release, Changfei Optical Fiber Cable (06869) fell 17.00% to HK$154.8; Junzhi Group (01300) fell 14.20% to HK$2.96; Zhongji Innox (03308) fell 11.70% to HK$1034.0; and Cambridge Technology (06166) fell 11.32% to HK$102.6.

According to the news, the optical communications industry has faced several major downsides. US bipartisan lawmakers proposed a bill prohibiting the use of Chinese optical modules for sensitive federal systems and listing Zhongji Xuchuang and Xinyisheng as restricted suppliers; Hengtong Optoelectronics plans to issue shares to raise no more than 6.636 billion yuan to invest in 9 projects including optical communications; Oracle recently issued a force majeure notice to data center developers. The project may not be put into operation as scheduled in 2028, and the market's expectations for the subsequent optical module procurement pace have begun to waver.

Citi believes that Zhongji Xuchuang and Xinyisheng have no significant business exposure in the US government's defense or intelligence supply chain. The five-year transition period and exemptions stipulated in the bill have also further cushioned possible disturbances in the near future, but political risks need to be tracked. Jefferies, on the other hand, said that it is very unlikely that the US will ban Chinese optical modules from entering private data centers; currently, the bill is more just policy noise.