Key breakthroughs have been achieved in China's optical communication technology. According to reports, the world's first ultra-low-loss, multi-core optical cable line supporting the S+C+L three-band (short band + conventional communication band + long band) spectrum was officially completed and activated in Qingdao, Shandong. This new cable overcomes the traditional capacity limits of optical fiber, marking the commercial entry of China's space-division multiplexing fiber and multi-band fusion technology. It provides a novel technical solution for computing power interconnection and ultra-large bandwidth transmission in the intelligent era. Traditional fibers are constrained by the number of cores and available bandwidth, creating a clear bottleneck. This innovative cable employs a four-core fiber structure, integrating four independent signal channels within a hair-thin fiber, and extends ultra-low loss and large effective area characteristics from the C and L bands to the S band, enabling "three-band parallel transmission." This is akin to widening a two-lane information highway into three lanes, increasing single-core bandwidth by nearly 50% and boosting the capacity of a single fiber to over five times that of traditional fibers, sufficiently meeting future demands for AI computing and T-bit level ultra-high-speed transmission. Relevant Hong Kong-listed optical communication firms include: Changfei Optical Fiber & Cable Co., Ltd. (06869), Cambridge Technology Co., Ltd. (06166), and General Intergroup Limited (01300).
Market Overview
The optical communication sector led gains overnight on U.S. markets. Marvell Technology surged over 32%, marking its best single-day performance since 2000. Coherent rose over 17%, while Lumentum and Corning gained over 13% each. AI server manufacturers showed mixed performance, with Hewlett Packard Enterprise up over 19%, Super Micro Computer up 7%, and Dell down over 6%. The Nasdaq Golden Dragon China Index closed up 1.83%. ADRs for Tencent Holdings rose 9.1%, Meituan gained 6.5%, Li Auto increased 6.1%, and Alibaba was up 4.32%. The Hang Seng Index ADR indicated a slight decline. WTI crude oil for the current month rose $1.23 to settle at $93.39 per barrel, a gain of 1.33%. COMEX gold for the current month increased by $12.90, or 0.29%, to $4,519.2 per ounce.
Notable Developments
Investment activity is increasing in the Hong Kong property market. Over the past weekend, a project by Hong Kong developer Sun Hung Kai Properties sold out its fourth batch of units on the first day. Data from Centaline Property Agency shows that the primary market remained active in May, recording nearly 2,100 transactions, marking the third consecutive month exceeding the 2,000-unit level. The market's activation stems from the release of pent-up local demand and support from mainland buyers. The positive sentiment from mainland buyers has also bolstered confidence among Hong Kong purchasers. Under these combined factors, a "buy now before prices rise further" mentality is emerging, accelerating purchasing decisions. Industry observers believe the current Hong Kong property market is free from cooling measures, and coupled with government initiatives like talent schemes, the residential sector is poised for sustained strong growth. A recent CITIC Securities report noted stable overall performance for 15 Hong Kong property developers in 2025, with two types of firms seeing earlier profit improvement and steady or rising dividends: leading Hong Kong developers like Sun Hung Kai Properties, CK Asset Holdings, and Sino Land; and property firms with strong operational and asset management capabilities, such as Link REIT, Swire Properties, Wharf REIC, and Hang Lung Properties.
Tiger Brokers announced that starting June 12, 2026, it will suspend new opening and additional position transactions for all existing investor accounts within mainland China, allowing only selling and closing positions. Fund deposits will also be paused, while withdrawals will remain functional. The adjustments are part of regulatory compliance efforts and do not affect services for existing clients outside mainland China or the safety of client assets.
According to Iranian media, the application system for ship passage permits through the Strait of Hormuz is now fully operational, allowing global shipowners and captains to submit applications 24/7. This involves the Hong Kong-listed shipping sector.
A European Central Bank report indicates that gold has surpassed U.S. Treasury bonds to become the world's largest reserve asset. This shift is driven by years of significant gold purchases by central banks globally and the near-doubling of gold prices over the past two years. As of the end of 2025, gold accounted for 27% of total global central bank reserve assets, up from 20% at the end of 2024.
NVIDIA has commenced full-scale production of its Spectrum-X Ethernet Silicon Photonics technology. The new Spectrum-X switches, built on integrated photonics packaging, support the deployment of AI factories using the NVIDIA Vera Rubin platform across data centers. This technology represents a co-designed, full-stack approach from NVIDIA. Compared to networks using traditional transceivers, Spectrum-X delivers 5 times greater energy efficiency, 5 times higher AI uptime, and 1.3 times faster deployment. This development is relevant to the Hong Kong-listed optical module (CPO) sector.
Everest Medicines Ltd. (01952) granted an exclusive license to Travere Therapeutics for the development and commercialization of the new kidney disease drug civorebrutinib. Everest will receive an upfront payment of $112.5 million and is eligible for up to $1.03 billion in potential development, regulatory, and commercial milestone payments across up to five indications, plus tiered royalties (ranging from high single digits to low double digits) based on future net sales.
BYD plans to build 20,000 ultra-fast charging stations by the end of this year. As of the end of May, over 6,150 stations had been constructed, with 149 located in Shenzhen.
China Literature Ltd. (00772) intends to invest over 400 million yuan to acquire an additional approximately 28.22% stake in Wuhan Yihuatiankai Culture Communication Co., Ltd. The announcement highlights strategic synergies, with China Literature's vertically integrated IP ecosystem complementing the target company's capabilities across various content forms.
Shandong Gold Mining Co., Ltd. announced that its subsidiary intends to participate in a share transaction involving Soochow Securities' acquisition of shares in Donghai Securities. The subsidiary plans to sell its 14.13% stake for 1.945 billion yuan. Preliminary estimates indicate a fair value change loss of approximately 705 million yuan on its total 18.71% holding in Donghai Securities, expected to reduce the company's 2026 total profit by the same amount. The transaction is subject to multiple approvals and remains uncertain.
In the grey market, shares of Shougang Langze (02553), set to list on June 3, closed over 107% higher than their IPO price of HK$14.6, at HK$30.3.
Genscript Biotech Corporation (01548) announced that its associate, Legend Biotech, reported positive preliminary clinical data for its in vivo CD19/CD20 dual-target CAR-T cell therapy, LB2501, in patients with relapsed or refractory B-cell non-Hodgkin lymphoma. The data will be presented at the 2026 European Hematology Association (EHA) Congress.
Autotronic (02889) plans to jointly acquire a photonic chip enterprise with Ping An Capital, aiming to extend its industrial chain upstream into the chip sector. The target company is an integrated circuit design firm specializing in high-performance communication chips, including high-speed photonic chips—a core component in AI data center optical modules and a direction with high demand for domestic supply.
Focus on Individual Stocks
Concord New Energy Group Ltd. (00182) achieved a landmark breakthrough in its overseas expansion, securing grid interconnection approval from ERCOT for a 1GW data center in the U.S. The data center is located adjacent to the group's existing utility-scale solar and storage projects, enabling a co-located "solar+storage+data center" power supply model. In 2025, the group signed long-term power purchase agreements for several U.S. solar projects with leading global tech firms and successfully obtained a secondary listing on the Singapore Exchange's main board, laying groundwork for future overseas financing and business growth. Guoyuan International previously noted that the U.S. project's investment cost is about $1 per watt, with a PPA price locked for 15 years. After considering the Investment Tax Credit, the equity IRR is estimated at around 15%, with an all-in project IRR exceeding 10%. The financing structure allows for 80%-85% debt (without corporate guarantees), requiring only 15%-20% equity. Debt financing costs are estimated at 6%-7%. Suppliers for components and storage batteries are leading domestic Chinese companies. The first U.S. solar-plus-storage project is expected to commence operations in 2027, contributing profits and cash flow.
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