Stock Track | YOFC Plummets 5.14% Intraday Amid Industry Supply Concerns and Profit-Taking

Stock Track07-22 13:13

YOFC's stock plummeted 5.14% intraday on Wednesday, extending recent volatility as selling pressure persists in the optical fiber sector.

The decline follows market concerns about potential industry supply risks after Hangdian Shares proposed a share placement to raise up to RMB 2.88 billion for optical fiber preform and specialty fiber capacity expansion. Although some analysts note that capacity expansion will take time and AI infrastructure-driven demand remains robust, the news has intensified bull-bear divergence in the sector.

Additional selling pressure comes from profit-taking after YOFC reached elevated levels following a strong first-half profit alert, combined with continued net selling by southbound funds. The stock has retreated significantly from its recent peak as investors reassess supply-demand dynamics in the optical fiber market.

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