Chinese Optical Chip Stocks Fall for Second Session on US Trade Curb Fears

Fears of possible US trade restrictions on next-generation optical transceivers used in data centres drove another wave of selling in Chinese optical chip shares, extending a rout across artificial intelligence supply chain stocks. Optical chipmakers in China lost ground for a second consecutive session on Friday even after major suppliers issued reassurances. The benchmark CSI 300 Index dropped 1.3 per cent by the midday break, touching its weakest level since August last year. Upstream laser chip suppliers absorbed the heaviest losses, falling more sharply than companies that make optical transceivers further down the supply chain. The sell-off follows renewed concern that Washington could impose curbs on advanced optical transceivers destined for data centres, a prospect that has weighed on the sector and rippled through AI-related equities more broadly.