Zhongji Innolight unveils RMB 8B buyback as HK shares jump 6%

Zhongji Innolight plans to repurchase RMB 4 billion to 8 billion of shares for equity incentives, sending its Hong Kong-listed shares up more than 6 percent.

The optical module maker said in a filing that the buyback price will not exceed RMB 1,200 per share, covering up to 6.67 million shares, or 0.57 percent of total share capital. The repurchased shares will fund employee stock ownership plans or equity incentive programs, with any unused portion cancelled within the specified period. The buyback period runs no more than 12 months from board approval, and the company will use its own funds or self-raised capital.

The company, valued at over RMB 1 trillion and listed on the Shenzhen exchange as 300308.SZ, raised HK$53.4 billion ($6.8 billion) in Hong Kong's largest IPO of 2026. Its shares fell as much as 8 percent on debut as investors questioned AI-driven valuations across the technology sector, a correction that has weighed on optical module and semiconductor stocks in both Hong Kong and mainland China.

The buyback, among the largest announced by a Chinese technology company this year, gives management a tool to support the stock after the post-IPO pullback. The move could also lift sentiment across the optical module and AI hardware supply chain, where Zhongji Innolight holds a leading global market share. The announcement follows a period of heightened volatility in AI-linked equities, with the Hang Seng Index and mainland benchmarks retreating from recent highs as investors reassessed the returns on heavy AI capital expenditure.

The repurchase plan provides a floor under the stock while management works through the post-IPO correction. Investors will watch for the first tranche of buybacks and any follow-on equity incentive grants tied to AI infrastructure demand.

This article is for informational purposes only and does not constitute investment advice.