China AI hardware stocks slump after news US plans to ban imports of Chinese components
SOXX•China AI hardware stocks fall on reported U.S. import plan
SHANGHAI, Aug. 5 (Reuters) - China’s artificial intelligence hardware stocks slumped on Wednesday after news that the Trump administration is drafting a ban on U.S. imports of new models of Chinese data centre components.
The CSI300 Telecommunication Services Index .CSI000916 tumbled 6% in early trading.
Export-dependent data centre component makers including Zhongji Innolight 300308.SZ, Eoptolink Technology 300502.SZ and Suzhou TFC Optical Communications 300349.SZ all opened sharply lower.
The U.S. government is working on a measure to bar imports of new Chinese optical transceivers, which allow data to travel over fibre-optic cables at the speed of light within data centres, Reuters reported.
The news threatens to hit already shaky confidence in China’s AI hardware stocks after a savage sell-off.
Zhongji Innolight shares fell roughly 8% in both Shanghai and Hong Kong in early trading. The Chinese optical parts maker generated 62% of its revenue from the U.S. in the first quarter.
