WEBVTT - Zhongji Innolight Drops, Minimax Gains, SK Hynix Jumps

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio News.

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<v Speaker 2>The Stock Movers Report, your roundup of companies making moves

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<v Speaker 2>in the stock market harnessing the power of Bloomberg Data.

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<v Speaker 1>Let's take a look at some stocks on the move

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<v Speaker 1>today in Asia. I'm Stephen Carroll with Caroline Hepker, and

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<v Speaker 1>we're joined by our equity supporter Winnie Sue for more.

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<v Speaker 1>Let's start with optical shares in China and Japan reacting

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<v Speaker 1>to possible new US roles to ban Chinese components from

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<v Speaker 1>data centers.

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<v Speaker 3>Yeah, that one is a very interesting one because we're

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<v Speaker 3>seeing really these stocks in the region moving as well

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<v Speaker 3>as some of these related stocks overnight moving elsewhere as well. Now,

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<v Speaker 3>what we've learned from well the report is that the

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<v Speaker 3>US is drafting this ban on imports of these Chinese

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<v Speaker 3>data centers components to protect US data center infrastructure, because

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<v Speaker 3>they are saying that this is to prevent Chinese firms

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<v Speaker 3>from potentially installing these malware or stealing data from the

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<v Speaker 3>data centers in the US. Now you're seeing the Chinese manufacturers,

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<v Speaker 3>the likes of jointing in a light and I ope

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<v Speaker 3>to link falling on that front. And remember the interesting

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<v Speaker 3>thing is that these two names or some of these

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<v Speaker 3>major Chinese companies actually account for about half of the

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<v Speaker 3>global market share for the optical transceivers. And that's why

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<v Speaker 3>we're also hearing from strategists that this is actually most

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<v Speaker 3>likely just a negotiation tactic from the US ahead of

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<v Speaker 3>the President Trump's meeting with China's shi and just because

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<v Speaker 3>how much the US relies on these Chinese manufacturers. And interestingly,

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<v Speaker 3>we are seeing the competitors, the likes of Fujikura, for example,

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<v Speaker 3>in Japan, are rising on that front.

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<v Speaker 4>Yeah, so it's all of the jost link between the

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<v Speaker 4>US and China when it comes to AI. On the

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<v Speaker 4>flip side, some companies are benefiting from the news that

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<v Speaker 4>the US might not subject Chinese open weight AI models

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<v Speaker 4>to US government testing.

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<v Speaker 3>Yeah, exactly. That one was also in a very interesting

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<v Speaker 3>development when we heard from the White House saying that

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<v Speaker 3>these open weighted models that have been developed by the

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<v Speaker 3>Chinese competitors are not subject to or won't be subject

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<v Speaker 3>to the government testings under the new AI safety framework.

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<v Speaker 3>So that is kind of helping the sentiment when it

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<v Speaker 3>comes to these AI models in China. We're seeing the

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<v Speaker 3>likes of Minimax and also Jupou surging out on that front.

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<v Speaker 3>But I think something that's important to highlight is that

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<v Speaker 3>right now there's this really heated debate about how to

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<v Speaker 3>handle these Chinese Chinese open weight AI models, especially after

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<v Speaker 3>how they were able to show that their capabilities are

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<v Speaker 3>really going beyond what strategists initially thought about. When you

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<v Speaker 3>think about how just this week we had that updated

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<v Speaker 3>new model from Ali Baba's three point eight Max that

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<v Speaker 3>is said to be able to rival the likes of

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<v Speaker 3>Anthropics Fable, and also we had Deep six new version

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<v Speaker 3>that is also just second to communicate three now with

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<v Speaker 3>Mini Max. They also had that AI video model that's

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<v Speaker 3>a new version, saying that they only require cost of

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<v Speaker 3>about half of what their peers require. So you can

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<v Speaker 3>see that with all these new models coming up and

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<v Speaker 3>how they require less cost, it's really shifting the overall

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<v Speaker 3>landscape that we see when it comes to the AI

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<v Speaker 3>development globally. Yeah.

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<v Speaker 1>Indeed, and just briefly then on sk Hihene's shares rising today.

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<v Speaker 3>Yeah, very interesting. It's actually also outperforming Samsung Electronics. And

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<v Speaker 3>the difference here is that there are some expectations that

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<v Speaker 3>the company will be unveiling some buybacks in more shareholder

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<v Speaker 3>return very soon because we had this standard twenty five

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<v Speaker 3>day quiet period for sk high next that's ending, that

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<v Speaker 3>was ending yesterday, and that is coming after they had

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<v Speaker 3>their adr shares back in July. So with that overhang lifted,

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<v Speaker 3>investors are expecting the company to roll out more of

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<v Speaker 3>these announcements. And remember back in July when they had

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<v Speaker 3>their earnings called, investors were pretty disappointed that there was

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<v Speaker 3>a lack of clarity when it comes to the shareholder return.

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<v Speaker 3>That's why stocks fail so much, and that is why

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<v Speaker 3>there is a bit more optimism this time around in

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<v Speaker 3>terms of the timing.

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<v Speaker 2>The Stockmover's report from Bloomberg Radio. Check back with us

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