The CSI300 Telecommunication Services Index tumbled 6 percent in early trading.
Export-dependent data centre component makers including Zhongji Innolight, Eoptolink Technology and Suzhou TFC Optical Communications all opened sharply lower.
The Trump administration is working on a measure to bar imports of new Chinese optical transceivers, which allow data to travel over fibre-optic cables at the speed of light within data centres, Reuters reported.
Zhongji Innolight shares fell roughly 8 percent in both Shanghai and Hong Kong in early trading. The Chinese optical parts maker generated 62 percent of its revenue from the US in the first quarter of 2026.
Hong Kong’s Hang Seng Index rose 38 points, or 0.15 percent, to open at 25,890 points on Wednesday.
Japan’s Nikkei index rose more than 3 percent on Wednesday as AI-related stocks jumped to track their U.S. peers, and investors scooped up stocks with a strong outlook.
The Kospi Index in Seoul rose 4 percent in early trade. (Xinhua & Reuters)
