Shares of major language model (LLM) developers, Zhipu—formerly Knowledge Atlas Technology—and MiniMax Group soared by at least 23% each in Hong Kong, elevating their year-to-date increases to approximately 2,000% and 260%, respectively. Onshore chip manufacturers Semiconductor Manufacturing International and Yuanjie Semiconductor Technology also saw gains.
On Thursday, June 18, China announced various initiatives aimed at broadening AI usage in consumer markets, advancing the deployment of next-gen AI devices, and enhancing integration in e-commerce, logistics, and retail. Additionally, the securities regulator promised to relax listing rules and promote dual listings for AI companies, signifying a more comprehensive effort to fast-track industry development.
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Chinese stocks have mirrored the gains of US counterparts as investor enthusiasm for AI and wider technology trends continues to thrive. Local markets were closed for a holiday on Friday, June 19.
“The market is leveraging this news as a catalyst for pushing prices upward. Investors are fully committed to tech, closely following US stocks,” commented Xiang Xiaotian, director at Shanghai Chengzhou Investment Management, in a Bloomberg interview. “Anything outside of AI is effectively still in a bear market.”
Favorable feedback on Zhipu’s latest system compared to international competitors also contributed to the positive sentiment.
The surge in Chinese AI stocks contrasts sharply with the 18% drop in the Hang Seng Tech Index, which remains heavily influenced by conventional internet platforms. These firms are facing challenges amid fierce competition and increasing AI-related investments, impacting their profitability.
Shares of Alibaba Group Holding and Tencent Holdings listed in Hong Kong are poised for a fifth consecutive day of decline, reflecting underwhelming sales on June 18 and sluggish consumption patterns.
