On October 13, CIG fell 5.76% in regular trading, trading at HK$87.4 per share, with turnover of HK$53.24 million. The decline came as newly issued placement shares were admitted to the Hong Kong stock exchange, intensifying dilution concerns and triggering broad selling pressure across the optical communications sector.

According to prior announcements, CIG completed the issuance of 18.446 million H shares under a placement agreement, representing approximately 19.91% of its issued share capital before the placement. The placement was executed at HK$105.16 per share, raising gross proceeds of approximately HK$1.94 billion. Combined with a convertible bond offering, the company had announced plans to raise net proceeds of over HK$6.5 billion to fund high-speed optical module capacity expansion and strategic upstream investments.

The listing of these new shares has heightened investor concerns over near-term earnings per share dilution. Market data showed significant depository activity linked to the placement, with shareholding positions moved into Morgan Stanley Hong Kong Securities on October 12. The optical communications sector traded broadly lower on October 13, with peers including YOFC, ZJ Innolight, TRIGIANT and COMBA also posting declines.

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