Zhipu AI Soars 42% as Investors Bet Big on Chinese AI
Chinese AI Stocks Gallop Ahead in Year of the Horse
The Hong Kong stock market kicked off Lunar New Year trading with fireworks in the artificial intelligence sector, as investors piled into China's leading AI developers despite broader market weakness.
Record-Breaking Rally
Zhipu AI, China's large language model specialist, saw its shares skyrocket 42.7% to close at HK$725 - catapulting its market capitalization to HK$323.2 billion ($41.3 billion). The eye-popping gain marked one of the most dramatic single-day moves ever seen in Hong Kong's tech sector.
The surge didn't occur in isolation. Rival MINIMAX enjoyed its own banner day, climbing 12% to HK$957 per share while surpassing the psychologically important HK$300 billion valuation threshold.
What's Fueling the Frenzy?
Market observers point to Zhipu's February 12 launch of its GLM-5 flagship model as the catalyst behind investor excitement. The new iteration represents a quantum leap:
- Parameter scale nearly doubled from 355B to 744B
- Programming performance improved by over 20%
- Achieved top rankings in three Agent benchmark tests
The company simultaneously implemented aggressive price hikes exceeding 30% for its programming packages - a gamble that paid off spectacularly when inventory sold out almost immediately. This marked China's first-ever sellout of premium AI programming tools.
"The market is voting with its dollars," noted tech analyst Li Wei from Hong Kong-based Pengyuan Capital. "Zhipu has demonstrated it can not only develop cutting-edge models but also monetize them effectively - that combination is catnip for investors."
Broader Implications
The parallel success of MINIMAX suggests growing confidence in China's domestic AI ecosystem despite ongoing U.S. technology restrictions. Both companies now rank among Hong Kong's most valuable tech firms, signaling shifting priorities among Asian investors.
Key Points:
- Historic gains: Zhipu's 42% surge highlights intense demand for quality AI plays
- Product momentum: GLM-5 launch and successful price hikes demonstrate execution capability
- Sector strength: MINIMAX's simultaneous rise confirms broader AI enthusiasm
- Valuation milestone: Two Chinese AI firms now commanding $40+ billion valuations
