On July 30, Zhongji Innolight (中际旭创) was listed on the Hong Kong Stock Exchange. The IPO price was set at 980 HK dollars, and based on the base number of shares issued, the company raised approximately 53.4 billion HK dollars. This deal marks the largest IPO in Hong Kong in seven years. A group of 33 top-tier global institutions formed the cornerstone investor lineup, including Temasek, BlackRock, the Abu Dhabi Investment Authority, Alibaba, and Tencent, collectively subscribing for 3.45 billion US dollars, which accounted for 49.12% of the global offering. The subscription was oversubscribed by more than 13 times, and the institutional subscription channel closed a day early. Why does a company that makes optical modules deserve such attention?
What does the "Dream Team" of cornerstone investors signal?
First, let's look at the fundamentals. Since 2021, Zhongji Innolight has been the world's largest optical interconnect solution provider by revenue for five consecutive years. In 2025, it held a 21.2% share of the overall optical interconnect solutions market and a 28.1% share of the high-speed data center optical interconnect solutions market. Its long-term clients include Nvidia, Google, Microsoft, and Meta, and the company's R&D team exceeds 2,200 people. In terms of performance, the company's 2025 revenue was 38.24 billion yuan, a year-over-year increase of 60.3%; net profit was 11.58 billion yuan, an increase of 115.6%. The first quarter of 2026 saw further acceleration: revenue reached 19.50 billion yuan, and net profit was 6.32 billion yuan, with year-over-year growth of 192.1% and 273.7%, respectively. These figures outline the company's solid business foundation.
The lineup of 33 cornerstone investors reflects global capital's collective bullishness on China's core technology assets. Looking at the partial list of investors, the categories include: sovereign wealth funds like Temasek, the Abu Dhabi Investment Authority, and the Canada Pension Plan; international asset managers such as BlackRock, J.P. Morgan Asset Management, Hillhouse HHLR, and Wellington Management; industrial capital from Alibaba and Tencent; and renowned institutions like Bain Capital, General Atlantic, Boyu Capital, IDG Capital, Yunfeng Capital, and Chow Tai Fook Enterprises. In total, 33 institutions committed 3.45 billion US dollars, representing 49.12% of the global offering, with a six-month lock-up period.
This list conveys at least three signals. First, sovereign wealth funds are making a "secondary bet". Temasek and the Abu Dhabi Investment Authority had previously become significant shareholders through an investment in Zhongji Innolight's overseas operating entity, TeraHop, and this large-scale subscription is a continuation of their long-term confidence. Second, industrial capital is making a strategic entry. Alibaba and Tencent each subscribed for 50 million US dollars. They are themselves super-buyers of cloud services, and optical modules are a core component of data centers. This move from supplier to stakeholder is significant. Third, the capital spectrum is fully covered. From sovereign wealth funds to hedge funds, and from pension funds to family offices, it is uncommon for different types of long-term capital to reach a consensus on the same target.
What is the strategic game behind the "A+H" listing?
Zhongji Innolight's listing in Hong Kong is far more than a simple dual listing. The company has a high proportion of overseas revenue, with most of its customers and orders located abroad. A Hong Kong listing will help the company finance its overseas production capacity, R&D investment, and global customer expansion, enhancing its capital strength to compete in the international market. Looking at the use of proceeds, 35% is expected to be invested in cutting-edge technology R&D, covering 1.6T performance improvements, 3.2T mass production preparation, and next-generation optical interconnect technologies like CPO. Another 30% will be used for global capacity expansion, with plans to increase annual production capacity from 40 million units to 90 million units by 2029, with over 80% of the new capacity dedicated to high-end 1.6T and above products. Meanwhile, 15% will be allocated for industrial chain mergers and acquisitions, extending into upstream optical chips and silicon photonics technology, and the remaining 20% will be used for supply chain enhancement and working capital.
The enthusiasm from overseas capital for Chinese AI assets is not limited to this IPO subscription. Just last June, the US-based ProShares Fund filed for a 2x leveraged fund targeting Zhongji Innolight. Simultaneously, filings were made for leveraged long funds for other companies, including Eoptolink, Tongfu Microelectronics, Foxconn Industrial Internet, Luxshare Precision, CATL, GigaDevice, Haiguang Information Technology, and Cambricon Technologies. From cornerstone subscriptions to leveraged products, global capital's deployment into China's core AI assets is blossoming in multiple areas.
From this perspective, the deeper significance of Zhongji Innolight's A+H dual listing may be the creation of a new pricing window for China's AI hardware. After its listing in Hong Kong, global investors can more easily compare it with overseas AI hardware leaders in terms of products, profitability, and valuation. The company's high growth since 2025 and its revenue structure from global cloud computing clients mean it is no longer just a "domestic substitution target" but a company participating in the global AI capital expenditure cycle. This global pricing will not only affect one company; it signifies that Chinese tech companies are being re-evaluated within the coordinates of global industrial competition. If the company secures sustained overseas research coverage and institutional allocations after the listing, other Chinese AI hardware assets, such as optical modules, optical chips, PCBs, and semiconductor equipment and materials, may also gain clearer international comparison benchmarks. This point is more noteworthy than the short-term price fluctuation on the first day of trading.
Which indices have a high weighting of Zhongji Innolight?
The technology growth sector is sensitive to expectations and valuations. Fluctuations in external markets, the pace of capital expenditure, changes in technology roadmaps, and shifts in industry dynamics can all lead to significant short-term volatility. For investors focused on the AI computing sector, using index-based tools to cover indices with a high weighting of Zhongji Innolight is one way to capture the industry's development opportunities while diversifying single-stock risk. As of June 30, 2026, among indices tracked by ETFs, the ChiNext 50 Index has the highest "content" of Zhongji Innolight, with a weight of 17.53%. The ChiNext 50 ETF (159369) tracks this index and offers the lowest management fee rate in the market at 0.15% per year, making it convenient for investors looking to focus on opportunities among ChiNext's leading companies. The ChiNext Index also has a relatively high weighting of Zhongji Innolight at 14.55%. Investors looking to capture investment opportunities in core ChiNext assets can consider the ChiNext ETF (159915), which is the largest in scale tracking the ChiNext Index. Additionally, the Guochen Growth 100 Index, which focuses on growth style, also has a significant weight of 11.41% for Zhongji Innolight. Currently, the Growth ETF (159259) is the only ETF tracking the Growth 100 Index.
Table: Indices with a high weighting of Zhongji Innolight in the market
Index Name: ChiNext 50 Index
Weight of Zhongji Innolight: 17.53%
Example Tracked Product: ChiNext 50 ETF (159369, feeder funds A/C: 026095/026096)
Index Name: ChiNext Index
Weight of Zhongji Innolight: 14.55%
Example Tracked Product: ChiNext ETF (159915, feeder funds A/C/Y: 110026/004744/022907)
Index Name: Growth 100 Index
Weight of Zhongji Innolight: 11.41%
Example Tracked Product: Growth ETF (159259, feeder funds A/C: 027858/027859)
Note: Data from the Index Express, as of June 30, 2026. For investors without a stock account, products like the E Fund ChiNext 50 ETF Feeder Fund (A/C: 026095/026096), E Fund ChiNext ETF Feeder Fund (A/C/Y: 110026/004744/022907), and E Fund Guochen Growth 100 ETF Feeder Fund (A/C: 027858/027859) are available. Have more questions about index investing or want to check more detailed data? Open the "Index Express" WeChat mini-program and ask the AI directly for professional answers.
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