Yangtze Optical Fibre and Cable (YOFC) (06869.HK) Popular Stock Analysis Report

Yangtze Optical Fibre and Cable Joint Stock Limited (H-share code: 06869.HK, A-share code: 601869.SS) is a leading enterprise in the optical communication/communication equipment sector. The core reasons for its recent popularity as a Hong Kong stock include two aspects: First, the company completed a placement of 70 million new H-shares on December 10, 2025, raising HK$2.258 billion for overseas business development and working capital replenishment. This transaction is the largest Hong Kong stock placement in the communication industry in 2025, demonstrating market recognition of the company’s position and the optical communication industry [1]; Second, the optical communication sector has become a market focus due to AI-driven growth in high-bandwidth communication demand, and YOFC, as a global leader in optical fiber and cable, directly benefits [1].

Based on A-share data from December 18 to 31, 2025 [0], the stock price opened at $108.05 and rose continuously, reaching a阶段性 high of $131.50 on December 24, with a cumulative increase of over 21%; it began to correct on December 25 and closed at $116.36 on December 31, with a correction of approximately 11%. In terms of trading volume, it reached a阶段性 high of 37.52M on December 19, significantly higher than the average level, reflecting investor participation enthusiasm [0].

1. Sector and Capital Event Resonance
   : The industry demand growth driven by the AI wave and the company’s large-scale Hong Kong stock placement event have resonated, pushing the stock price to rise sharply in the short term, reflecting the market’s dual confidence in the long-term prospects of the optical communication industry and the company’s overseas expansion strategy.
2. Funding and Sentiment Support
   : The Hong Kong stock placement received multiple times oversubscription and introduced well-known long-term funds; meanwhile, the A-share trading volume increased significantly, reflecting dual attention from institutional and retail investors, and the sector hot spot driving effect is obvious [1][0].
3. Coexistence of Short-term Volatility and Long-term Trend
   : The stock price corrected after a rapid rise, indicating short-term profit-taking pressure exists, but industry demand growth and the company’s expansion plan provide support for long-term development.

• Short-term Volatility Risk
  : After the stock price hit a阶段性 high, it corrected; investors need to be alert to volatility caused by short-term profit-taking [0];
• Liquidity Impact
  : The Hong Kong market is closed on January 1, so H-share trading is suspended, leading to short-term liquidity constraints;
• Uncertainty of Overseas Expansion
  : The financing is used for overseas business, so attention should be paid to international market competition and geopolitical risks.

• AI-driven Demand Growth
  : Optical communication is the foundation of AI high-bandwidth connectivity, and the long-term growth trend of industry demand is clear;
• Overseas Market Expansion
  : The Hong Kong stock placement funds support overseas business development, which is expected to further increase the company’s global market share;
• Industry Leader Position
  : As a global leader in optical fiber and cable, it has technical and scale advantages and is expected to continue to benefit from industry growth.

Yangtze Optical Fibre and Cable (YOFC) (06869.HK) recently became a popular stock due to large-scale Hong Kong stock placement [1] and AI-driven industry demand growth [1]. The A-share performance shows that the stock price has a significant short-term increase but has correction pressure [0], and institutions and the market recognize the company’s and industry’s prospects [1][0]. Investors need to pay attention to short-term volatility risks and overseas expansion uncertainty, while seizing the long-term growth opportunities of the optical communication industry.