On October 13, CREALIGHTS fell 5.01% in regular trading, with turnover reaching 10.56 million HKD. The decline reflects sustained pressure on the optical communications sector amid lingering speculation over potential U.S. Federal Communications Commission restrictions on Chinese-produced optical modules.
The selling was driven by market concerns that the FCC could eventually impose limits on Chinese optical transceivers, with the most likely implementation point expected at the 3.2T generation. Although analysts have noted a potential U.S. content exemption pathway, formal rules have yet to be announced, keeping uncertainty elevated. Persistent worries over future policy direction, combined with expectations of loosening optical chip prices, have triggered structural profit-taking across the sector.
CREALIGHTS, which supplies optical modules, active optical cables, and optical sub-assemblies for AI data centers, has been a key beneficiary of rising 1.6T module adoption and increased southbound capital flows following its inclusion in the Stock Connect program. However, a comparatively high valuation has left the stock vulnerable to sector-wide de-risking.
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