Zhipu AI Soars Over 40% as Investors Bet Big on Chinese AI
Chinese AI Stocks Gallop Ahead in Year of the Horse
The Hong Kong stock market reopened after Lunar New Year holidays to a surprising spectacle - while broader indices struggled, China's artificial intelligence sector charged ahead like the zodiac's spirited horse. Leading the pack was Zhipu AI, whose shares closed up a remarkable 42.72% at HK$725, catapulting its market capitalization beyond HK$323 billion.
Twin Stars Shine Bright
Zhipu wasn't alone in its stellar performance. Domestic rival MINIMAX also enjoyed double-digit gains, climbing 12% to HK$957 and joining Zhipu in the exclusive club of Chinese AI firms valued above HK$300 billion. "The simultaneous surge suggests investors are making sector-wide bets on China's AI capabilities rather than picking individual winners," noted HSBC technology analyst Wei Zhang.
What's Fueling Zhipu's Run?
The company's explosive growth appears well-founded. Just before the holiday break on February 12, Zhipu unveiled GLM-5 - its next-generation flagship model boasting:
- Expanded parameters scaling from 355B to 744B
- Over 20% improvement in programming performance
- Top marks in three Agent evaluations within open-source benchmarks
Perhaps more telling was the market response to Zhipu's revised pricing strategy. The company hiked rates for programming packages by 30% or more - only to see them sell out rapidly. This marked China's first-ever sellout of premium AI programming tools, demonstrating remarkable product-market fit.
"The pricing power Zhipu demonstrated is what really got investors excited," explained Morgan Stanley's Lisa Chen. "When you can raise prices by a third and still sell out, that speaks volumes about your competitive moat."
Looking Ahead
The question now becomes whether this momentum is sustainable. Some analysts caution that valuations may be getting ahead of fundamentals, while others see this as just the beginning of China's AI ascendancy.
Key Points:
- Zhipu AI shares skyrocketed over 40%, valuing company at HK$323B+
- Sector peer MINIMAX also surged amid broad enthusiasm for Chinese AI
- Recent GLM-5 launch and strong package sales boosted investor confidence
- Market celebrating demonstrated pricing power amid tech sector challenges
