Zhongji Innolight Co., a Chinese maker of optical transceivers used in AI data centers, saw its shares drop on its first day of trading on the Hong Kong stock exchange Thursday. The stock fell as much as 3% from its IPO price, trading at HK$953 by 9:33 a.m., a decline of 2.86%. The drop came amid a global sell-off in artificial intelligence stocks, dampening investor sentiment for the company's highly anticipated listing. Zhongji Innolight had raised HK$53.4 billion ($6.8 billion) in its initial public offering, making it Hong Kong's largest listing in seven years and the biggest IPO in the city this year. The company is a leading supplier of high-speed optical modules that connect servers in AI data centers, a sector that has drawn intense investor interest. Despite the weak debut, the offering was oversubscribed, reflecting strong demand from institutional investors. The stock's performance will be closely watched as a barometer for AI-related listings in Hong Kong, which has seen a surge in tech IPOs. Zhongji Innolight's listing is expected to help the company expand production capacity and fund research into next-generation optical technology for AI applications.