China optical stocks rally as Microsoft challenges proposed U.S. import curbs Roushni Nair Wed, November 11, 2026 at 1:30 AM EST 2 min read MSFT +0.20% 300308.SZ +15.07% 688041.SS +3.34% Trade MSFT on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Investing.com -- Chinese optical communications stocks rallied on Wednesday, with several Hong Kong and mainland listings reaching their highest levels since early November, as investors weighed the implications of a potential U.S. restriction on Chinese data-centre equipment and Microsoft's push to have the proposal dropped.
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Yangtze Optical Fibre and Cable's Hong Kong-listed shares climbed 7.1%, while its mainland shares gained 6.6%, with both reaching their highest levels since November 4.
Zhongji Innolight's Hong Kong shares jumped 10.2% and its mainland-listed stock advanced 12.8%, also hitting their highest levels since November 4. CIG Shanghai's Hong Kong shares surged 16.9% to their highest since November 2, while its A-shares rose 10% to their highest since November 5. Hygon Information Technology added 2.5%.
The gains followed a Reuters report that Microsoft and other technology companies and trade groups were pressing the Trump administration to abandon plans to restrict imports of new Chinese optical transceivers, which connect servers, routers and switches within data centres.
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The proposed restrictions have raised concerns across the AI industry because Chinese manufacturers dominate global supply.
Chinese companies account for about two-thirds of the optical transceiver market, according to Counterpoint Research, while U.S. competitors lack the production capacity to replace them quickly.
Microsoft has warned that restrictions could slow the expansion of U.S. data centres, potentially leaving AI chips already purchased by cloud companies unused while they wait for the components needed to connect them.
John Miller, general counsel of the Information Technology Industry Council, told Reuters exclusively that the chips could "just sit there waiting around un-utilized" without the transceivers.
The debate adds another layer to U.S.-China technology tensions ahead of President Donald Trump's expected meeting with Chinese President Xi Jinping at the APEC leaders' summit in Shenzhen on November 18-19. Trump has said he expects to meet Xi during the gathering.
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