On Friday, September 11th, leading optical module companies mounted a strong afternoon defense, helping to narrow the decline in the ChiNext Index. Investor attention turned to high-"light" index opportunities, with the ChiNext AI ETF Huabao (159363) seeing elevated on-market activity as its underlying index staged a "V-shaped" recovery during the session.

Within the optical module supply chain, Zhongji Innolight Co.,Ltd. bucked the broader market trend to close up 4%, while Eoptolink Technology Inc.,Ltd. gained nearly 3%. Meanwhile, Zhaolong Interconnect led the pack with an 8.63% surge, and KING SIGNAL advanced more than 7%. AI applications showed renewed vigor in the afternoon, with the cost-reduction logic for AI-driven film and television gaining traction, as evidenced by MG Video's notable intraday spike.

Reports emerged that on September 10th, local time, the U.S. Federal Communications Commission (FCC) published a final rule in the Federal Register titled "Safeguarding Communications Networks from National Security Threats through the Equipment Authorization Program." The rule, which was approved on July 22nd, was slated for formal publication in the Federal Register on September 11th, with an effective date 30 days thereafter. Notably, across the 13-page rule text, optical module firms including Eoptolink Technology Inc.,Ltd., Zhongji Innolight Co.,Ltd., and T&S Communications were absent from any specific mention.

Market interpretation suggests that with the FCC policy now in place, concerns surrounding optical communications have been substantially alleviated. The restrictions primarily target logic devices on the Covered List and do not extend to the broader optical communications category. The relevant companies have not been added to any list, effectively rendering the most extreme pessimistic scenarios unfounded. Policy certainty is notably higher for the passive component segment, which collectively should help improve risk appetite across the optical communications sector.

Where to begin with investment considerations

According to Zhongtai Securities, optical modules remain the segment with the most fully realized earnings delivery at present. The industry is expected to continue benefiting from the triple drivers of AI computing power expansion, speed upgrades, and network architecture evolution. On the optical module front, 800G continues to maintain high prosperity, while 1.6T has entered the phase of scaled volume shipments, with further evolution toward 3.2T and CPO/NPO architectures. Overall, the industry's prosperity remains on an upward cycle, with future focus areas including the sustainability of AI capital expenditures, the pace of high-speed product volume ramp-up, and the earnings delivery capabilities across individual segments.

Why focus on the high-"light" theme and AI applications

For investors seeking to position along the high-"light" mainline and AI applications, the ChiNext AI ETF Huabao (159363) and its off-market feeder funds (Class A 023407, Class C 023408) deserve attention. These vehicles emphasize allocations to optical module and CPO leaders while also covering AI applications. The underlying index holds a combined weight of more than 35% in Zhongji Innolight Co.,Ltd., Eoptolink Technology Inc.,Ltd., and T&S Communications, positioning it as a core flagbearer for AI computing infrastructure.

Data sources include the Shanghai and Shenzhen stock exchanges, Wind, and others. Note: As of August 31, 2026, according to GuoZheng Index, the top three constituent stocks of the ChiNext AI Index are Eoptolink Technology Inc.,Ltd. (12.61% weight), Zhongji Innolight Co.,Ltd. (11.99% weight), and T&S Communications (10.25% weight). Institutional views referenced from Zhongtai Securities' report "Optical Communications Prosperity Continues, Awaiting Valuation Recovery - Optical Communications Industry H1 2026 Summary."

Reminder: Recent market volatility may be elevated, and short-term gains or losses do not predict future performance. Investors should make rational decisions based on their own capital positions and risk tolerance, paying close attention to position sizing and risk management.

Regarding ETF fees: When subscribing or redeeming fund shares, the subscription/redemption agency may charge a commission of up to 0.5%. On-exchange trading fees are subject to actual charges by securities firms, with no sales service fee imposed. For feeder fund fees: Huabao ChiNext AI ETF Feeder Fund Class C charges no subscription fee; redemption fee is 1.5% within 7 days and 0% at 7 days (inclusive) or longer; sales service fee is 0.3%. Class A subscription fees are 1% for amounts below 1 million yuan, 0.6% for 1 million (inclusive) to 2 million yuan, and 1,000 yuan per transaction for amounts of 2 million yuan (inclusive) or above; redemption fee is 1.5% within 7 days and 0% at 7 days (inclusive) or longer; no sales service fee applies. According to the fund manager's assessment, the ChiNext AI ETF Huabao carries a risk rating of R4 (medium-high risk), suitable for aggressive (C4) and above investors; suitability matching opinions should be based on sales institution guidance.

Risk disclosure: The ChiNext AI ETF Huabao passively tracks the ChiNext AI Index, with a base date of December 28, 2018, and a publication date of July 11, 2024. The index's annual returns for 2021-2025 were 17.57%, -34.52%, 47.83%, 38.44%, and 106.35%, respectively, with corresponding annualized volatility of 23.73%, 27.34%, 38.02%, 45.42%, and 41.1% over the same period. Index constituent composition adjusts periodically according to index compilation rules, and backtested historical performance does not predict future index returns. Index constituents are shown for illustrative purposes only; individual stock descriptions do not constitute investment advice in any form and do not represent holdings information or trading activities of any fund managed by the manager. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors bear full responsibility for their own investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice of any form to readers, and no liability is assumed for direct or indirect losses arising from the use of this content. Fund investing carries risks. Past performance of funds does not represent future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Investors should invest in funds with caution.