Shanghai, Jan 25, 2026, 08:13 CST — Market closed.
Zhongji Innolight Co., Ltd.’s Shenzhen-listed A-shares (300308.SZ) dropped 5.8% to 585 yuan on Friday, pulling back from a 6.72% rally the previous day.
The decline is significant since Zhongji is a key supplier of optical communication transceiver modules for cloud-computing data centers and telecom networks—a popular route into China’s AI hardware expansion.
By the close of 2025, Zhongji and Eoptolink’s Xinyisheng surpassed longtime leaders like CATL and Tencent as the two most heavily held stocks in mutual funds, according to Shanghai Securities News citing Tianxiang Investment Consulting. Zhongji appeared in 1,190 funds, with total holdings worth 78.4 billion yuan, the report noted.
Friday’s drop coincided with a block trade — a privately negotiated transaction logged on exchange systems — involving 43,900 shares valued at 25.69 million yuan, executed at 585 yuan, according to Securities Times’ Databao data shared by Eastmoney. Turnover hit 23.46 billion yuan, with “main funds” seeing net outflows of 3.08 billion yuan. The stock’s margin-financing balance — representing shares bought on margin — remained at 23.5 billion yuan. East Money Finance
The broader market edged up on Friday, with the Shanghai Composite rising 0.33%. Yet, the CPO sector—short for co-packaged optics, a data-center networking tech—saw declines. Zhongji, Xinyisheng, and Tianfu Communication all dropped over 5% as funds shifted toward solar and commercial space stocks, according to Databao.
Separately, Zhongji stepped in to quell rumors tying it to a stake buy in Tongyuan Environment by the son of its controller. The company clarified the transaction was personal, not connected to the listed firm, according to the Cailian news service.
But crowded positioning can backfire. Bloomberg said regulators are considering stricter rules for mainland companies aiming to list in Hong Kong — including a minimum market-cap hurdle. If these proposals pass, they could slow down approval times.
Investors face a key date on Jan. 28 as Zhongji schedules an extraordinary shareholders meeting in Suzhou to approve a planned Hong Kong listing of H-shares — those listed in Hong Kong — along with related details. The agenda also includes routine related-party transactions expected in 2026, plus a proposal for a controlled subsidiary to issue warrants, according to a filing.
China’s exchanges reopen Monday, and traders will be eyeing early price moves for signs of stability after Friday’s slide, as well as any fresh disclosures before the Jan. 28 vote.
