CIG shares surged 5.50% during intraday trading on Tuesday, as multiple factors aligned to boost investor sentiment in the optical communications company.

The rally was fueled by institutional assessments that a rumored U.S. FCC ban on Chinese next-generation optical modules would be extremely difficult to implement, given that Chinese manufacturers account for over 70% of global high-speed optical module production capacity. This significantly eased market panic that had previously weighed on the stock.

Additionally, the controlling shareholder's share reduction plan totaling 3,938,300 shares was fully completed as its time window expired on August 6, removing the overhang pressure that had been suppressing the stock. The prior session's decline of over 5% also created short-term oversold conditions that triggered a technical rebound, while positive sentiment in the optical communications sector was reflected in peer ZJ Innolight's 1.94% gain on the same day.