ChiNext Index Hits Four-Year High During Session; First 1,000 Yuan Stock Born in Optical Communication Track

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Zhang Dawei Chart of the Daily K-line for the Optical Communication Module Index

The ChiNext Index hits a four-year high during trading

The first thousand-yuan stock in the optical communication sector

◎ Reporter Xu Wei

On March 20, the A-share market showed a divergent trend. The Shanghai Composite Index fluctuated downward, falling below 4,000 points and filling a key gap, while the ChiNext Index defied the trend and strengthened, reaching a high of 3,426.61 points during the session, a four-year high since December 2021. Market sectors such as photovoltaic equipment, optical communication, and new energy were relatively active. Yuanjie Technology’s stock price broke the 1,000 yuan mark, becoming the newest thousand-yuan stock in the A-share market.

At the close, the Shanghai Composite Index was 3,957.05 points, down 1.24%; the Shenzhen Component Index was 13,866.20 points, down 0.25%; the ChiNext Index was 3,352.10 points, up 1.30%; and the STAR Market Composite Index closed at 1,669.98 points, down 1.15%. The combined trading volume of the Shanghai, Shenzhen, and Beijing markets reached 2.3 trillion yuan, an increase of 175.6 billion yuan from the previous trading day.

The strong performance of the ChiNext Index was mainly driven by active growth sectors like optical communication and new energy. By the close, the optical communication module index rose over 3%, with stocks such as Changguang Huaxin and Geliier up over 10%, Xinyi Sheng up over 8%, and Zhongji Xuchuang up over 6%. Notably, Zhongji Xuchuang’s trading volume reached 33.3 billion yuan, ranking first among A-shares; Xinyi Sheng’s trading volume was 32.1 billion yuan, second overall.

Of particular interest is Yuanjie Technology, which has become the latest thousand-yuan stock in the optical communication sector. Yesterday, the stock opened at 992.74 yuan, rose steadily during the session, reaching a high of 1,140.00 yuan, and closed at 1,114.99 yuan, a 17.37% increase. The turnover rate was 7.26%, with a trading volume of 6.784 billion yuan, and a total market value of 95.8 billion yuan. Data shows that the stock has surged over 780% in the past year and has increased 74% so far this year, reflecting the high prosperity of the optical communication sector. Additionally, Yuanjie Technology is the eighth thousand-yuan stock in A-shares, second only to Kweichow Moutai in price, making it the second-highest priced stock in the market.

According to Yuanjie Technology’s earnings report: the company is expected to achieve a total revenue of 601 million yuan in 2025, a year-on-year increase of 138.5%; net profit attributable to shareholders is 191 million yuan, compared to a loss of 6.13 million yuan in the same period last year; and basic earnings per share are 2.24 yuan. During the reporting period, driven by the continuous development of artificial intelligence technology and the increasing demand for optical chips, the company optimized resource allocation based on its technical accumulation and product performance, improving operational efficiency. Sales of CW light source products in data centers saw significant growth, with gross margins higher than those of its telecom business.

The recent surge in the optical communication sector is backed by strong industry logic. At the recent 2026 NVIDIA GTC conference, NVIDIA founder and CEO Jensen Huang showcased Spectrum X, the world’s first mass-produced co-packaged optical (CPO) switch, and mentioned that three parallel development routes—copper cable expansion, southbound optical expansion (Scale-Up), and northbound optical expansion (Scale-Out)—would continue to advance, requiring all partners to increase production in copper cables, fiber optics, and CPOs. Huang also revealed that the next-generation computing architecture, Feynman, will enable the joint deployment of copper wires and CPOs for the first time.

Research from Dongwu Securities suggests that AI computing power is driving intergenerational upgrades in optical modules, with device demand entering a high prosperity cycle. As AI training and inference clusters expand, optical module speeds are moving from 400G to 800G and accelerating toward 1.6T, with shipment structures shifting rapidly toward high-end specifications. High-speed products require higher precision in chip placement, more stable coupling, broader testing bandwidth, and better consistency, pushing equipment upgrades toward high accuracy, automation, and uniformity. Additionally, the architecture is evolving from traditional pluggable modules to CPO/OIO, with increased demand for advanced packaging and integrated testing, boosting investment in production line equipment. The combination of demand growth and technological upgrades is driving both volume and price increases in equipment.

Looking ahead, Cailian Securities believes that, amid repeated macroeconomic shocks overseas and the upcoming earnings season for A-shares, short-term market confidence and capital momentum remain to be strengthened. It recommends maintaining cautious positions and waiting for signs of market recovery. In the medium term, driven by continued loose fiscal and monetary policies, ongoing inflows of household savings into the market, improvements in corporate performance amid “anti-involution” efforts, and breakthroughs in global AI technology, the current A-share rally remains solid. The recent Middle East conflict is expected to only temporarily affect market sentiment and rhythm, not change the overall market direction. Confidence in the medium- and long-term positive trend remains intact.