Chinese optical chip stocks fall further on fears of possible US trade curbs

Shares of Chinese optical chipmakers extended losses for a second straight session on Friday, as investors feared the United States could impose trade curbs on next-generation optical transceivers used in data centres.

The CSI 300 Index fell 1.3 per cent by midday to its lowest level since August of last year, according to the South China Morning Post. Upstream laser chip suppliers dropped more steeply than downstream transceiver makers, and the report links the sell-off to a wider decline across artificial intelligence supply chain stocks. The report describes the curbs as possible rather than confirmed, so the scope of any restrictions remains unclear.