Zhongji slips in Hong Kong as AI selloff weighs on $6.8 billion debut

"The rapid development of the digital economy and artificial intelligence is reshaping the global industrial landscape," Liu Sheng, Zhongji's chairman, executive director and president, said at the listing ceremony. Zhongji said it was the world's largest optical interconnect solutions provider by revenue last year with a 21.2% market share, citing consultancy CIC. The U.S. accounted for 61.7% of first-quarter revenue. In June, the U.S. added Zhongji to a list of companies that it suspects have Chinese military ties. Zhongji said its addition lacked factual or legal basis, and it had not resulted in material order cancellations, suspensions or delays. ($1 = 7.8424 Hong Kong dollars) Zhongji ranked as the second most actively traded stock by turnover on the Hong Kong bourse, after Tencent 0700.HK, with 12.2 million shares worth HK$11.5 billion changing hands. It was ahead of Semiconductor Manufacturing International Corp 0981.HK, Z.AI 2513.HK and Alibaba 9988.HK. The benchmark Hang Seng Index .HSI gained 0.2%, while the Hang Seng Tech Index .HSTECH fell 1.3%. Zhongji's Hong Kong debut followed a pullback in Asian chip shares as investors questioned high valuations, the cost of building AI data centres and, outside of China, competition from Chinese technology suppliers. "This primarily reflects the significant pullback in AI-related stocks in both Hong Kong and overseas markets since its bookbuilding started," said Kenny Ng, strategist at China Everbright Securities International. Zhongji makes optical transceivers used to move data through fibre-optic cables in data centres. Zhongji's lead in high-speed optical communications and its AI infrastructure spending could support earnings growth over the medium-to-long term, but the stock could face high near-term volatility, Ng said. Zhongji Innolight's 3308.HK new Hong Kong shares closed 2% lower on Thursday after a mixed trading debut for the Chinese maker of data-centre optical parts, which raised HK$53.4 billion ($6.8 billion) in the city's biggest share sale this year. The shares closed at HK$960. They had opened at HK$971 and hit a high of HK$973 before sliding to an intraday low of HK$880 in afternoon trade, a fall of 10.2% from the offer price of HK$980. Its Shenzhen-listed shares 300308.SZ dropped 9.1%. The Hong Kong offering was subscribed 16.84 times and the international tranche 9.73 times, a filing to the Hong Kong Exchange on Wednesday showed. Zhongji said in the filing that concentrated Hong Kong share ownership could cause sharp price moves. The top 25 shareholders of the offering held 61.38% of the Hong Kong share capital at listing, the filing showed. The share sale was Hong Kong's biggest since Alibaba raised $12.9 billion in a secondary listing in 2019, LSEG data showed. It was also Asia's second-largest share sale so far this year after Chinese memory chip maker CXMT raised $8.6 billion and rose 466% in its Shanghai debut on Monday. CXMT was down 0.15% on Thursday. Companies have raised $33.8 billion from share sales in Hong Kong so far in 2026, a record year-to-date total and more than double the $16.4 billion raised in the same period a year earlier, LSEG data showed.

Zhongji slips in Hong Kong as AI selloff weighs on $6.8 billion debut

Company background and U.S. scrutiny

Trading activity and market backdrop

Hong Kong debut closes below offer price

Demand, ownership concentration and share-sale context

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