A focus on artificial intelligence, computing power, and every Nvidia product launch is common, but the crucial optical modules powering data centers come from a leading Chinese company. On July 30, the A-share optical module leader Zhongji Innolight debuted on the Hong Kong Stock Exchange, with 33 top global institutions rushing to act as cornerstone investors, resulting in an oversubscription of 13 times. This set a new record for Hong Kong IPO subscriptions in seven years.

Institutional giants like Temasek, BlackRock, Abu Dhabi Investment Authority, Alibaba, and Tencent all participated. In the AI era, optical modules serve as the "highways" within data centers, where massive amounts of data travel between servers during AI computation. Zhongji Innolight leads this race, having held the top global market position in optical interconnects for five consecutive years, with long-term clients including Nvidia, Google, Microsoft, and Meta. For 2025, the company reported revenue of 382.4 billion yuan and net profit of 115.8 billion yuan, representing year-on-year growth of 60.3% and 115.6%, respectively. In the first quarter of 2026, revenue reached 195 billion yuan and net profit hit 63.2 billion yuan, with growth rates surging to 192.1% and 273.7%.

For retail investors, how can they participate? The tech growth sector is known for high volatility, making concentrated bets on a single stock risky. An index acts like a report card, measuring the overall performance of a basket of companies. Buying an index fund means holding dozens of companies simultaneously, diversifying risk while precisely targeting a sector. Exchange-traded funds (ETFs) that track indices are traded on brokerage apps, while ETF-linked funds are available through banks and online channels. As of June 30, 2026, Zhongji Innolight held the highest weight in the ChiNext 50 Index at 17.53%, allowing investors to "semi-automatically" allocate to this optical module leader through the index. For those bullish on ChiNext leaders, the ChiNext 50 ETF E Fund (159369) and its linked funds (A/C: 026095/026096) offer a low-cost option, with annual management and custody fees of just 0.20%, among the lowest in the market. The ChiNext Index also has a significant Zhongji Innolight weighting at 14.55%, and investors seeking core ChiNext exposure can consider the ChiNext ETF E Fund (159915) and its linked funds (A/C/Y: 110026/004744/022907). In the Guozheng Growth 100 Index, Zhongji Innolight accounts for 11.41%. The Growth ETF E Fund (159259) and its linked funds (A/C: 027858/027859) are the only products tracking this index.

Now, let's examine the broader strategic move: Why did Zhongji Innolight choose a Hong Kong listing? The familiar logic of the tech industry is being re-evaluated by global capital markets. A dual listing on both the A-share and Hong Kong markets means the company is no longer just a "domestic substitute" but is now compared on the same playing field as Broadcom, Coherent, and others. Global investors are now using the same metrics to evaluate its technological barriers and production capacity, officially positioning it as a core asset in the global AI capital expenditure cycle. This development is far more significant than the stock's performance on its first trading day.

The world's most sophisticated capital has voted with real money, with 33 top institutions queuing up for subscriptions. While you don't have to follow the trend and buy individual stocks, you can use index tools to participate in the AI computing hardware feast at a low cost. For more questions on index investing, open the "Index Express" WeChat mini-program and ask the AI directly for professional answers.