During the mid-session trading on September 16, the optical module and CPO sector staged a rebound, with leading stocks displaying robust performance. Eoptolink Technology Inc Ltd and Tianfu Communication Technology Co., Ltd. each advanced by more than 4%, while Zhongji Innolight Co., Ltd. climbed over 3%. Additionally, Zhishang Technology Co., Ltd. hit the 20% daily price limit, Changxin Bocheang Technology Co., Ltd. rose 12%, and both Liantec Corporation and Tiancheng Optical Communication Technology Co., Ltd. gained more than 5%.

Despite broader market weakness, capital has shown a keen interest in high-optical index opportunities, with the benchmark index tracked by the ChiNext AI ETF Huabao (159363) surging more than 3% during intraday trading.

CIOE 2026 Confirms Sustained Industry Boom

According to CITIC Securities, the China International Optoelectronic Expo (CIOE 2026) has validated the high prosperity within the optical communications industry. Demand for optical modules and upstream components remains robust, with leading companies actively outlining ambitious annual capacity expansion plans. The emergence of new demand from technological upgrades and the subsequent increase in value per unit are becoming key market growth drivers, positioning the entire supply chain within a phase of rapid expansion.

Evolving Landscape and Strategic Shifts

In this environment, traditional optical communication manufacturers are actively promoting product upgrades while extending their reach into complete interconnect solutions to enhance their platform-based strategies. Meanwhile, domestic electrical chips and foundry capacity are accelerating their market penetration. Consumer electronics and precision optics companies are also venturing into passive optical communication components, creating fresh dynamics within the sector. Analysts favor optics firms that are aggressively entering the optical communication field, have established production capacity early, and are gradually shipping products, as well as domestic suppliers targeting critical supply chain gaps with the potential to secure major clients.

Investment Focus on High-Optical and AI Applications

For investors looking to capitalize on the high-optical theme combined with AI applications, attention may be directed toward the ChiNext AI ETF Huabao (159363) and its off-exchange feeder funds (Class A: 023407; Class C: 023408). This ETF emphasizes leading optical module and CPO companies, while also covering AI application opportunities. The benchmark index features a combined weight of over 35% for Zhongji Innolight, Eoptolink, and Tianfu Communication, establishing it as a core holding for AI computing power.

Data referenced from exchanges including the Shenzhen Stock Exchange and Wind. As of August 31, 2026, according to the Guozheng Index, the top three constituent stocks of the ChiNext AI Index are Eoptolink (12.61%), Zhongji Innolight (11.99%), and Tianfu Communication (10.25%).

Important Reminders

Investors are reminded that recent market volatility may be significant, and short-term gains or losses do not indicate future performance. Please make investment decisions prudently based on your own capital situation and risk tolerance, with close attention to position sizing and risk management. For the ETF, subscription and redemption agents may charge commissions up to 0.5% for such transactions. On-exchange trading fees are subject to actual brokerage charges, with no sales service fee applied. For the feeder funds, Class C does not charge a subscription fee; its redemption fee is 1.5% within 7 days and 0% for holdings of 7 days or more, with a sales service fee of 0.3%. Class A charges a subscription fee of 1% for amounts below 1 million yuan, 0.6% for amounts between 1 million and 2 million yuan, and a fixed 1,000 yuan per transaction for amounts of 2 million yuan or more. Its redemption fee is 1.5% within 7 days and 0% for 7 days or more, with no sales service fee. According to the fund manager's assessment, the ChiNext AI ETF Huabao is rated R4 (medium-high risk) and is suitable for aggressive (C4) and above investors; please refer to the sales institution for suitability matching advice.

Risk Disclosure

The ChiNext AI ETF Huabao passively tracks the ChiNext AI Index, with a base date of December 28, 2018, and a release date of July 11, 2024. The index's annual returns for 2021-2025 were 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively, with corresponding annualized volatility rates of 23.73%, 27.34%, 38.02%, 45.42%, and 41.1%. Index constituents are adjusted periodically according to the index compilation rules, and backtested historical performance does not predict future index performance. The index constituents mentioned are for illustrative purposes only; individual stock descriptions do not constitute investment advice in any form and do not represent the holdings or trading activities of any fund under the manager's umbrella. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any form of expression) is for reference only. Investors must be responsible for their own investment decisions made independently. Furthermore, any opinions, analyses, or forecasts herein do not constitute investment advice to readers of any form, nor shall they be held liable for any direct or indirect losses arising from the use of the content. Fund investment carries risks. Past performance of a fund does not represent its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of a fund's performance. Investors should invest in funds with caution.