Zhipu surges 33% as US AI curbs drive Hong Kong tech rally

US restrictions on Anthropic's frontier models are reshaping the competitive landscape for Chinese AI developers, sending Hong Kong-listed AI stocks to multiyear highs.

The Hang Seng Tech Index rose 1.28% to close at a session high, with AI concept stocks leading the charge after the Trump administration ordered Anthropic to suspend access to its most advanced models, Fable 5 and Mythos 5, for foreign nationals over national security concerns.

"The very individuals who were responsible, perhaps not in whole but crucial, for creating the most powerful AI models in the world are now persona non grata," said Peter Alexander, managing director at Z-Ben Advisors, warning of potential brain drain toward Chinese AI companies including Zhipu, DeepSeek and Moonshot AI.

Knowledge Atlas Technology (2513.HK), the Hong Kong-listed entity behind Zhipu, surged as much as 48% before paring gains to trade 33% higher at HK$1,461. The stock has risen more than tenfold since its January initial public offering. MiniMax (100.HK) gained 7.4%. The Hang Seng Index added 0.5%.

Wall Street raises bets on China AI

JPMorgan maintained its overweight rating on Zhipu and raised its price target to HK$1,400 from HK$950, citing the firm's model visibility and pricing power in a competitive market, according to a Bloomberg report. The bank downgraded MiniMax. Bank of America initiated coverage with buy ratings on both, setting targets of HK$1,250 for Zhipu and HK$500 for MiniMax.

"Zhipu's premium reflects faster annual recurring revenue growth, stronger talent density, public backing, and its lead in enterprise revenue exposure," BofA analysts said in a note. Zhipu's market capitalization stood at HK$489 billion, nearly four times MiniMax's HK$124.2 billion.

Over the weekend, Zhipu announced GLM-5.2, its latest open-source large model, would be released this week with no usage restrictions — a contrast to US developers facing mounting pressure to restrict frontier access. Zhipu raised cloud API prices by 8% to 17% alongside its GLM-5.1 launch in April, its second hike this year, as surging demand and investor pressure to deliver profits drove the increases.

Semiconductor and PCB stocks join the rally

Chip stocks also advanced, with Hua Hong Semiconductor (华虹宏力) rising 10%, GigaDevice Semiconductor (兆易创新) gaining 10%, and Semiconductor Manufacturing International Corp (中芯国际) adding 7%. PCB concept stocks jumped, with Kingboard Laminates (建滔积层板) surging 22%.

In the IPO market, snack maker Liumei (溜溜梅) surged 193% on its debut, signaling strong retail and institutional demand for new listings in Hong Kong.

BofA analysts said China is positioned to capture a substantial share of the global AI market within the value-for-money segment, with Chinese models gaining traction as cheap-and-capable performers as US pricing for frontier models rises. Zhipu and MiniMax are both planning a secondary listing on Shanghai's STAR Market.

This article is for informational purposes only and does not constitute investment advice.