On July 3, YOFC (Yangtze Optical Fibre and Cable) rose 3.15% in regular trading, trading at HK$205.8/share, with turnover of HK$1.82 billion. The stock rebounded after consecutive sessions of heavy selling, including a single-day plunge exceeding 16% on July 2.
The prior selloff was triggered by concerns over an industry-wide capacity expansion wave in optical fiber preforms, cautious remarks by management at the June 30 AGM — where CEO Zhuang Dan noted that supply-demand balance would determine how long the current fiber shortage lasts — and Nomura's warning that new entrants successfully scaling high-end products could intensify competition and pressure margins for incumbent players. Corning's GlassBridge glass optical interconnect platform also raised concerns about long-term mid-stream component demand erosion.
Following cumulative declines of over 30% from recent highs, short-term oversold conditions attracted bargain-hunting capital, driving this technical rebound. Notably, northbound funds net purchased HK$177 million of the stock on July 2 amid the selloff, suggesting selective institutional accumulation at lower levels.
(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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