ZJ INNOLIGHT (03308) surged 5.20% during intraday trading on Thursday, staging a sharp recovery from earlier session losses. The rally came as investors digested a major disclosure showing Goldman Sachs had significantly increased its bullish bet on the stock.

According to a Hong Kong Stock Exchange filing released late Tuesday, Goldman Sachs Group's long position in H-shares of Zhongji Innolight jumped to 11.90% on July 30, doubling from 5.95% previously. The substantial increase in holdings by a major global investment bank provided a strong vote of confidence, helping to offset negative sentiment from Morgan Stanley's recent stake reduction and lingering concerns over a potential U.S. FCC ban on Chinese optical modules.

The stock had initially faced selling pressure earlier in the session, weighed down by news that Morgan Stanley trimmed its holdings by approximately 604,500 shares on July 31. However, the Goldman Sachs disclosure appeared to reassure investors about the company's long-term prospects in the optical communications sector, triggering a sharp intraday rebound.