Key facts
- Chinese optical communications suppliers' shares extended a sell-off on Friday.
- Third-quarter earnings were upbeat, driven by AI infrastructure investment.
- Eoptolink Technology, Suzhou TFC Communication, and Zhongji Innolight saw significant share price drops.
- Investors are questioning AI investment pace and company valuations.
Shares of major Chinese optical communications suppliers slumped on Friday, extending a two-day sell-off despite upbeat third-quarter earnings driven by the global artificial intelligence infrastructure boom. During morning trading in Shenzhen, Eoptolink Technology dropped as much as 15 per cent, while Suzhou TFC Communication slid 10.3 per cent and industry leader Zhongji Innolight fell over 7 per cent. The decline reflects investor concerns about the pace of AI investment and reassessments of company valuations, with the STAR 50 Index down approximately 40% from its June peak.