China AI hardware stocks slump after news US plans to ban imports of Chinese components

SHANGHAI, Aug 5 (Reuters) - China's artificial intelligence hardware stocks slumped on ‌Wednesday after news that the Trump ‌administration is drafting a ban on U.S. ​imports of new models of Chinese data centre components.

The CSI300 Telecommunication Services Index tumbled 6% in early trading.

Export-dependent data ‌centre component ⁠makers including Zhongji Innolight, Eoptolink Technology and Suzhou TFC Optical ⁠Communications all opened sharply lower.

The U.S. government is working on a measure ​to bar ​imports of new ​Chinese optical transceivers, ‌which allow data to travel over fibre-optic cables at the speed of light within data centres, Reuters reported.

The news threatens to hit already shaky confidence ‌in China's AI ​hardware stocks after a ​savage sell-off.

Zhongji ​Innolight shares fell roughly 8% ‌in both Shanghai and ​Hong Kong ​in early trading. The Chinese optical parts maker generated 62% of ​its revenue ‌from the U.S. in the ​first quarter.

(Reporting by Shanghai Newsroom; Editing ​by Tom Hogue)