Movement Alert|CIG Falls 5.01% in Regular Trading, Optical Communications Sector Sell-Off Weighs on Stock Amid Profit-Taking Pressure

Market Focus
Sep 28

On September 28, CIG fell 5.01% in regular trading, trading at HK$110.6/share, with turnover of HK$266 million. The decline came as the broader optical communications sector experienced a sharp collective sell-off, dragging individual stocks lower across the board.

Within the Communications Equipment sector, peer stocks declined in tandem: YOFC fell 12.33%, TRIGIANT dropped 9.57%, ZJ Innolight slipped 5.55%, and ZTE edged down 1.60%. The sector-wide weakness amplified selling pressure on CIG.

CIG had previously rallied significantly on multiple tailwinds, including batch shipments of 800G optical modules to major clients, expectations for 1.6T mass production in the second half of the year, and institutional upgrades — notably a brokerage raising its target price to RMB 424 with a sharply revised earnings forecast. The substantial short-term cumulative gains intensified profit-taking pressure. Recent data also showed sustained net selling by institutional funds, with net outflows of RMB 571 million recorded on September 24 and net margin financing repayment of RMB 120 million on the same day, signaling continued de-risking by leveraged participants.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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