A purported social media post attributed to a CITIC SEC consumer sector analyst declaring a career shift to optical modules sparked market discussion on the evening of April 22. The post, signed "Zhang Mingyuan, Consumer Industry Analyst at CITIC SEC," reflected on the past decade's consumer sector boom but stated a new belief in the future of AI and optical modules (CPO), calling it the most certain growth area for the next 5-10 years. The screenshot showed numerous supportive comments from peers at top institutions.
However, verification through the Securities Association of China's practitioner database revealed no individual named Zhang Mingyuan. CITIC SEC staff also confirmed that no employee by that name exists at the company. While "Zhang Mingyuan" is fictitious, the market's "chase for optical modules" is very real.
Wind data shows that as of the close on April 23, the CPO index has surged 69.62% year-to-date and 41.25% this month. The index has recorded staggering gains of 181.28% for the full year 2025, marking three consecutive years of growth from 2023 to 2025.
Individual stock performance has been even more dazzling. At the market open on April 23, Zhongji Innolight briefly rose over 2% to 908 yuan, pushing its market capitalization past the 1 trillion yuan threshold, becoming the second computing hardware stock after Industrial Fulian to achieve this milestone. The stock has soared over 1000% in the past year.
However, yesterday's optical module rally did not repeat. Shortly after opening, the market peaked then retreated, showing high volatility throughout the session. In the morning, funds flowed out of CPO and the broader computing hardware sector after hitting an emotional high. Some capital returned to computing hardware in the afternoon, with Zhongji Innolight repeatedly crossing above its intraday average line, helping the three major indices narrow their losses. The indices ultimately failed to turn positive, with fewer than 2000 stocks rising across the market. Zhongji Innolight closed at 897 yuan, with a total market cap of 998.9 billion yuan, just 1.1 billion yuan shy of the trillion yuan mark. Meanwhile, the baijiu sector led gains strongly, with Yingjia Gongjiu hitting the limit-up and multiple stocks including Laobaigan Liquor, Gujing Distillery, and Shanxi Xinghuacun Fenjiu posting increases.
Notably, Zhongji Innolight's "tenfold in one year" surge has placed the allure of optical modules squarely before public fund managers. The newly disclosed Q1 2026 reports show Zhongji Innolight remains the top holding of public funds, with over 5500 active equity funds holding a total market value of 73.896 billion yuan. It entered the top ten holdings at the end of Q3 2025 and replaced Contemporary Amperex Technology as the number one holding by Q4 2025.
Market jokes often capture the sentiment accurately. One recent online quip categorized stocks into three types: those standing in the light, light just standing there, and those standing there naked. Zhongji Innolight undoubtedly represents the first category, with its monumental gains and trillion yuan approach. However, the April 23 peak-and-decline pattern serves as a reminder: places where the light is too bright can easily cause burns.
Comments