Optical communication shares lift China stocks on US AI gains
SHANGHAI: China stocks rose on Thursday, led by co-packaged optics shares, tracking gains in US AI giants after they posted upbeat forecasts on hardware demand. Hong Kong shares were roughly flat. China’s blue-chip CSI300 Index climbed 0.5% by the lunch break, while the Shanghai Composite Index gained 0.4%. Hong Kong benchmark Hang Seng was up 0.1%. Optical module leaders Eoptolink Technology,…
China's stock market soared on Thursday, propelled by optics shares and US AI companies, following upbeat forecasts of hardware demand. The CSI300 Index increased by 0.5% and the Shanghai Composite Index rose 0.4% by midday trading. Hong Kong's Hang Seng also climbed by 0.1%. Eoptolink Technology, TFC Optical Communication, and Zhongji Innolight led the optical module gain, with shares up 4.2%, 10.5%, and 5.5%, respectively.
The rally also benefited from Lumentum's 14% gain in the US, and the 5G Communication Index and STAR50 Index both rose nearly 3% and 2%, respectively. China's memory chip giant CXMT also saw a 1.3% increase. Onshore financial shares remained steady after China's central bank maintained a loose monetary stance, but did not signal rate cuts or reserve-ratio changes.
Hong Kong tech majors rose 0.3%. However, Tencent Holdings fell 3.8%, reaching a two-week low after reporting a record quarterly loss and raising capital expenditure on AI investments. UBS analysts noted that weak consumption trends might limit ad-load expansion and revenue growth, while AI investments take time to generate returns. Materials shares fell 3.6%, hit by gold mining company declines.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
