Shanghai, Feb 8, 2026, 09:35 GMT+8 — The market is shut.
- A-shares closed out Friday just a touch higher, wrapping up yet another choppy session.
- Leverage and cross-border flows are sending out mixed signals as markets head into Monday’s open.
- Mid-week inflation numbers are on the radar, while the Spring Festival shutdown threatens to sap liquidity quickly.
Suzhou TFC Optical Communication Co., Ltd.’s Class A shares ended Friday up 0.4% at 252.97 yuan, wrapping up a session that saw the price swing from 241.72 to as high as 268.01 yuan amid brisk action. Roughly 49 million shares changed hands by the close, according to exchange data. 1
Why it matters now: This name is right in the thick of the mainland’s “AI infrastructure” trade—one of those stocks that tends to yank a whole cluster of peers when it moves. On Friday, it ranked as the second most-traded Shenzhen stock through the Stock Connect northbound channel, clocking 43.66 billion yuan in turnover. That put it just behind CATL, and ahead of another optical-module player, Zhongji InnoLight, according to Eastmoney’s Choice terminal. 2
It’s a packed stretch. According to Hong Kong’s Stock Connect schedule, trading between Feb. 16 and Feb. 23 is off the table—Shanghai and Shenzhen are on holiday, both northbound and southbound routes labeled “closed.” The doors swing back open Feb. 24. 3
The action on Friday looked choppy, almost like a back-and-forth contest. At 1:06 p.m., shares abruptly shot up over 2% in just five minutes, hitting 263.48 yuan. Turnover reached 7.10 billion yuan right then, an intraday snapshot from Eastmoney showed. 4
Leverage is wobbling. Margin financing and securities lending—one of China’s main leveraged routes—pulled back on Feb. 5. Net margin selling hit 419 million yuan, while the total margin and securities lending balance sank 5.64% for the day, landing at 7.061 billion yuan, according to Stockstar data. 5
There was little relief from the broader market either. Shanghai’s benchmark dropped 0.25% on Friday; the ChiNext index lost 0.73%. According to Securities Times, “two-financing”—that is, margin trading and securities lending—shrank across Shanghai, Shenzhen and Beijing to 2.68 trillion yuan as of Feb. 5. Rongzhi Investment’s Xia Fengguang told the paper, “Keeping a low profile into the new year may not be a bad thing.” Meanwhile, Yang Yijie at Bihu Capital flagged the risk of offshore market moves echoing directly into A-shares once trading resumes after the long holiday. 6
Reuters company data shows Suzhou TFC Optical builds high-speed optical devices and offers optoelectronic packaging manufacturing services. 7
Fundamentals are another factor fueling this trade. Back in January, the company projected that 2025 net profit attributable to shareholders would land between 1.88 billion and 2.15 billion yuan—a 40% to 60% jump from last year, Eastmoney’s company brief shows. 8
Valuation? That’s the battleground. With a trailing P/E near 107, traders are on edge. The next earnings drop is slated for April 23—plenty of potential for a letdown if the annual numbers can’t justify this rally. 9
The risk here is straightforward: should leverage continue to unwind and demand fades from the “AI optics” trade, high-beta stocks could tumble fast in light trading. The Spring Festival break adds another layer—routine profit-taking might snowball, with no chance for a reset after the market closes.
Monday’s open puts the focus squarely on northbound turnover—will it stay high? Traders are also eyeing whether the stock can stick above last week’s lows. The real macro hurdle lands mid-week: China’s January CPI and producer price numbers drop Feb. 11 at 9:30 a.m. local, according to the National Bureau of Statistics calendar. 10
