China’s artificial intelligence hardware stocks slumped on Wednesday after news that the US is ⁠drafting a ban on imports of new models of Chinese data centre components.

The CSI300 Telecommunication Services Index tumbled 6 percent in early trading.

Export-dependent data centre component makers including Zhongji ⁠Innolight, Eoptolink Technology and Suzhou ⁠TFC Optical Communications ⁠all opened sharply lower.

The Trump administration is working on ⁠a measure to bar imports of new Chinese optical transceivers, which allow data to travel over fibre-optic cables ⁠at the speed of light within data centres, Reuters reported.

Zhongji Innolight shares fell ⁠roughly 8 percent in both Shanghai and Hong Kong in early trading. The Chinese optical parts maker generated 62 percent of its revenue from the US in ⁠the first quarter of 2026.

Hong Kong's Hang Seng Index rose 38 points, or 0.15 percent, to open at 25,890 points on Wednesday.

Japan's Nikkei index rose more than 3 percent on Wednesday as AI-related stocks jumped to track their U.S. peers, and investors scooped up stocks with a strong outlook.

The Kospi Index in Seoul rose 4 percent in early trade. (Xinhua & Reuters)



Edited by Nazvi Careem