Changes in Hong Kong stocks | Changfei Optical Fiber & Cable (06869) rose more than 14% in early trading, the third largest shareholder completed holdings reduction, and the company is expected to continue to benefit from fiber price increases

The Zhitong Finance App learned that Changfei Optical Fiber Cable (06869) rose by more than 14% in early trading. As of press release, it had risen 8.49% to HK$173.8, with a turnover of HK$3,748 billion.

According to the news, Changfei Optical Fiber Cable issued an announcement stating that from April 10 to July 9, Changjiang Communications reduced its holdings of the company's total A-share shares by a total of 999,900 shares through centralized bidding transactions, accounting for 0.12% of the company's total share capital. The time range for the reduction period implemented by Changjiang Communications's current holdings reduction plan has expired. Changjiang Communications's shareholding ratio fell to 14.23%, and it is still the third largest shareholder of Changfei Optical Fiber Cable.

Nomura previously released a research report saying that in the short term, optical fiber supply restrictions will continue, and that Changfei can continue to benefit from higher spot prices and profit margin expansion due to more involvement in the AI data center market. However, if new entrants can successfully develop high-end products (i.e. air core fiber and multi-core optical fiber) and successfully implement their capacity expansion plans, the bank believes that market competition will intensify, and existing players such as Changfei Optical may face pressure to expand profit margins.