Sharp intraday reversal for two big models of the Hong Kong stock market, Zhipu plunges in the short term

The Hang Seng AI large model sector showed a clear division on the 29th during trading hours, with the leading gainer Zhi Pu and MiniMax both transitioning from gains to losses, as pressure from profit-taking at high positions was concentratedly released.

Zhi Pu's share price once surged by over 23%, nearing the HK$2,000 mark, but the gain quickly narrowed and turned negative. As of the time of writing, the decline has widened to over 4%. MiniMax's trend is similar; it rose by more than 7% at the open, but has since been continuously falling and is now down nearly 1%. Both stocks showed a typical short-term speculative characteristic of "rushing high and then retreating".

Since its listing in January of this year, Zhi Pu's cumulative increase has exceeded 15 times, with the share price climbing from the issue price of HK$116.2 to nearly HK$2,000, and its valuation has expanded significantly beyond what the fundamentals can support. Market analysis suggests that, in the absence of new catalysts, the loosening of high-position holdings is the main driver of this pullback.

MiniMax has also accumulated substantial short-term floating profits; profit-taking after a price rush has further increased the sector's pullback amplitude.

Both companies are currently in a loss-making phase. Zhi Pu had a net loss of about 2.96 billion RMB in 2024, and the pace of commercialization and monetization remains a core variable under market scrutiny. Against the backdrop of an extremely stretched valuation, the main driving force behind share price volatility is more from sentiment and the liquidity side, rather than fundamental improvement.