Shares of CIG jumped 5.01% during intraday trading on Wednesday, driven by a combination of easing regulatory concerns and the removal of a major shareholder overhang.

The rally was fueled by growing market confidence that earlier rumors of a U.S. Federal Communications Commission ban on Chinese optical transceiver modules are unlikely to materialize. Multiple institutions have highlighted that Chinese manufacturers dominate over 70% of global high-speed optical module production, making any such ban extremely difficult to implement. This de-escalation of trade fears has helped restore investor sentiment across the sector.

Additionally, the completion of a share reduction plan by controlling shareholder CIG Cayman and its concert party on August 6 has eliminated a key source of selling pressure. With peers ZJ Innolight and YOFC also posting strong gains, the broader optical communications sector recovery provided further tailwinds for CIG's advance.