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 ( ZHILF ), 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 ( ZHILF ) 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.