SHANGHAI, Aug 5 - Chinese equities tied to artificial intelligence hardware and data-centre components slumped in early trading after reports emerged that the U.S. administration is preparing a measure to prohibit imports of new Chinese models of data-centre components.
The CSI300 Telecommunication Services Index fell about 6% in early trading as investors reacted to the report. Market moves were concentrated among companies that rely heavily on exports to the United States; several data-centre component makers opened sharply lower.
Names singled out by the market included Zhongji Innolight, Eoptolink Technology and Suzhou TFC Optical Communications, all of which saw early-session declines. Zhongji Innolight shares dropped roughly 8% in both Shanghai and Hong Kong trading floors, according to market data. The company disclosed that it derived 62% of its revenue from the U.S. in the first quarter.
The reported U.S. measure would cover new Chinese optical transceivers, the components that transmit data over fibre-optic cables within data centres at high speeds. The possible restriction on imports of these new models has unsettled investors already contending with recent heavy selling in AI-related hardware stocks.
Market commentary following the news highlighted the potential hit to confidence in China’s AI hardware sector after a prior wave of sell-offs. Export exposure was a key focus, with companies that generate a large share of revenue from the U.S. singled out for steeper declines in early trade.
Key context and market reaction
- The CSI300 Telecommunication Services Index tumbled roughly 6% in early trading.
- Export-dependent optical component suppliers, including Zhongji Innolight, Eoptolink Technology and Suzhou TFC, opened sharply lower.
- Zhongji Innolight shares fell about 8% in both Shanghai and Hong Kong; the firm reported 62% of first-quarter revenue came from the U.S.
Impacted sectors - Telecommunications, data-centre hardware and equity markets tied to AI infrastructure saw the most immediate effect.
Observations
The reported import curbs on new optical transceiver models have catalysed another bout of selling in a group of stocks whose recent performance had already raised investor concern. The move drove notable early-session declines for the companies with greater export dependence on the U.S., intensifying scrutiny of revenue exposure and market access for China-based component manufacturers.