On July 21, CIG Shanghai rose 5.09% in regular trading, trading at 85.35 HKD/share, with turnover of 697 million HKD. The broader communications equipment sector warmed up, with YOFC gaining 2.77% and ZTE rising 3.5%.

The rebound follows a prolonged selloff in the optical communication sector driven by concerns over cross-border manufacturers shipping 800G optical modules sparking price wars and New York State's executive order banning large data center construction. CIG Shanghai's Hong Kong-listed shares had plunged over 50% in the preceding two weeks, displaying clear technical oversold characteristics.

Fundamentally, the company disclosed on July 14 that it expects H1 attributable net profit to surge 156.65% to 197.18% year-over-year, reaching 310.3 million to 359.3 million yuan. The growth is primarily driven by robust demand for high-speed optical modules, with significant order increases and product structure upgrades toward 800G products boosting gross margins. Capital flows suggest recovery buying emerged as investors recognized the disconnect between depressed valuations and strong underlying earnings momentum.

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