HK Stock Market Move | Zhongji Innolight (03308) fell more than 5% amid reports that U.S. lawmakers proposed a bill to ban Chinese optical modules.

Zhongji Innolight (03308) fell more than 5%, down 4.7% as of press time, at HK$1,116, with a turnover of HK$196 million. On the news front, an unfavorable development over the weekend concerning the optical module supply chain dominated discussions in investment circles. According to media reports, on September 25, U.S. senators from both parties proposed a bill to restrict Chinese optical transceivers. The bill proposes banning the federal government from using Chinese-made optical modules in government systems involving sensitive information, and named Chinese suppliers including Zhongji Innolight and Eoptolink Technology Inc. Some analysts pointed out that the bill is still at the proposal stage and provides a five-year transition period before the ban takes effect. Chinese high-end optical modules account for 70% of the global share, so the short-term actual impact is limited.