China optical chip stocks hit limit down; firms say they know of no price cuts
In short
Chinese A-share optical chip and CPO concept stocks fell sharply on the morning of October 8, with Dongshan Jingmi (东山精密) hitting its daily limit down and Yuanjie Keji (源杰科技) and Changguang Huaxin (长光华芯) falling by the 20% limit. Market rumours had said optical chip prices were under pressure, but Changguang Huaxin, Shijia Guangzi (仕佳光子) and Yongding Gufen (永鼎股份) told CLS they had received no news of price cuts.
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Optical chip and CPO concept stocks on China's A-share market fell sharply on the morning of October 8. As of 10:50, Dongshan Jingmi (东山精密, 002384.SZ), Yuanjie Keji (源杰科技, 688498.SH) and Changguang Huaxin (长光华芯, 688048.SH) were all at their daily limit down, and Shijia Guangzi (仕佳光子, 688313.SH) was down more than 15%, Yicai reported. Liante Keji (联特科技), Juguang Keji (炬光科技) and Changxin Bochuang (长芯博创) fell more than 8%, while Tianfu Tongxin (天孚通信), Guangku Keji (光库科技) and Guangxun Keji (光迅科技) fell more than 5%. CLS reported that Yongding Gufen (永鼎股份) fell more than 6%. [ 1 , 2 , 4 , 5 ]
Market rumours had said optical chip prices were already under pressure and that 1.6T-related optical chips faced pressure to cut prices. Changguang Huaxin told reporters it had not received any news of optical chip price cuts and would not guess at the reason for its share price fall; Yongding Gufen said the same. Shijia Guangzi also said it had no such news, and according to 36Kr, citing China Securities Journal, it said the sector adjustment may stem from a research report on US Federal Communications Commission (FCC) policy published by Morgan Stanley on October 1. [ 5 , 6 ]
Yicai linked the falls to loosening price expectations. On September 30, Changguang Huaxin chairman and general manager Min Dayong (闵大勇) said optical chip prices were stable because supply and demand were tight, but that a price decline could not be ruled out in the long term as yields improve, capacity expands and new players enter. Board secretary Zhang Yinhong (章殷洪) attributed the company's recent share price fall to an adjustment across chip technology stocks. Yicai also cited a February LightCounting report that said optical chip and transceiver capacity was catching up with demand, which could increase competition and lead to larger price falls before the end of 2026. Jianqiao Keji (剑桥科技) said in September that 800G products sell for 300 to 380 US dollars and that annual price declines would not be large. [ 4 ]
Yicai said recent share-sale announcements by several technology companies had weighed on sentiment. Yuanjie Keji's controlling shareholder ZHANG XINGANG and persons acting in concert disclosed a plan to sell up to 288,500 shares, worth about 490 million yuan at the announcement-day close of 1,700.03 yuan, the controller's first such plan since listing. A shareholder of Shijia Guangzi, Hebi Touzi Jituan (鹤壁投资集团), sold 4,519,800 shares, about 1.00%, between September 3 and 16. Overseas, the Philadelphia Semiconductor Index fell 1.15% and Corning fell 3.39%. Market analysis cited by Yicai said 1.6T module orders remain ample, some extending into 2027 or 2028, but that supply of DSP and EML chips constrains delivery. [ 4 ]
Why it matters
Business outlets linked the sell-off to loosening expectations for optical chip prices and to recent share-sale plans by major shareholders, which Yicai said had weighed on sentiment in the sector. Yicai also cited market analysis that order books for 1.6T optical modules remain full while high valuations, external policy uncertainty and price pressure on optical chips still need time to be absorbed.
Key facts
- Dongshan Jingmi (东山精密, 002384.SZ) fell by its daily limit on the morning of October 8. [ 1 , 2 , 4 , 5 ]
- Yuanjie Keji (源杰科技, 688498.SH) and Changguang Huaxin (长光华芯, 688048.SH) hit the 20% daily limit down. [ 2 , 4 , 5 ]
- Shijia Guangzi (仕佳光子, 688313.SH) fell more than 15%, and Yongding Gufen (永鼎股份) fell more than 6%, according to CLS. [ 4 , 5 ]
- Changguang Huaxin, Shijia Guangzi and Yongding Gufen said they had not received any news of optical chip price cuts. [ 5 , 6 ]
- Shijia Guangzi said the sector adjustment may stem from an October 1 Morgan Stanley research report on US Federal Communications Commission (FCC) policy. [ 6 ]
- Yuanjie Keji's controlling shareholder ZHANG XINGANG and persons acting in concert disclosed in late September a plan to sell up to 288,500 shares, 0.2317% of the company, worth about 490 million yuan at the announcement-day close. [ 4 ]
- Overseas, the Philadelphia Semiconductor Index fell 1.15% and Corning fell 3.39%, Yicai reported. [ 4 ]
Confirmed by several sources
- Dongshan Jingmi fell by its daily limit on October 8. [ 1 , 2 , 4 , 5 ]
- Yuanjie Keji and Changguang Huaxin hit the 20% daily limit down. [ 2 , 4 , 5 ]
- Shijia Guangzi fell more than 15%. [ 4 , 5 ]
- Rumours had circulated in the market that optical chip prices were under pressure, with 1.6T-related optical chips facing pressure to cut prices. [ 5 , 6 ]
- Changguang Huaxin, Shijia Guangzi and Yongding Gufen said they had not received any news of optical chip price cuts; Changguang Huaxin and Yongding Gufen declined to speculate on the reason for the share price falls. [ 5 , 6 ]
Still unclear
- What caused the sell-off. Yicai pointed to loosening optical chip price expectations and shareholder share-sale plans, Shijia Guangzi pointed to a Morgan Stanley report on FCC policy, and Changguang Huaxin and Yongding Gufen declined to speculate.
- What the October 1 Morgan Stanley report on FCC policy said. Only one document mentions the report, citing Shijia Guangzi, and it does not describe its contents.
- The origin of the optical chip price-cut rumour. The documents say only that the rumour had circulated in the market; no source is named.
- Whether optical chip prices will fall. Changguang Huaxin's chairman said prices are stable for now but a decline is not ruled out in the long term, Yicai cited a LightCounting report saying growing capacity could bring larger price falls by the end of 2026, and Jianqiao Keji (剑桥科技) expected annual declines in module prices to be small.
What local media are saying
Timeline, local time
- CLS reports CPO concept stocks weakening in early trading, with Dongshan Jingmi at limit down and Yuanjie Keji and Changguang Huaxin down more than 17%. [ 1 ]
- CLS reports Changguang Huaxin and Yuanjie Keji touching the 20% limit down and Huaci Gufen (华瓷股份) touching limit down. [ 2 ]
- Jiemian reports the semiconductor sector weakening, with Yuanjie Keji at the 20% limit down and Changguang Huaxin down more than 19%. [ 3 ]
- Dongshan Jingmi, Yuanjie Keji and Changguang Huaxin are all at limit down and Shijia Guangzi is down more than 15%, Yicai reports. [ 4 ]
- CLS reports that Changguang Huaxin, Shijia Guangzi and Yongding Gufen said they had received no news of optical chip price cuts. [ 5 ]
- 36Kr reports Shijia Guangzi's view that the sector adjustment may stem from an October 1 Morgan Stanley report on FCC policy. [ 6 ]