Zhipu AI Open-Sources GLM-5.2, Hong Kong Stock Surges Up to 48% in a Single Day
Alina Collins
Zhipu AI announced it will open-source its flagship model GLM-5.2, sending shares up as much as 48% to HK$1,620 on Monday; cumulative gains since its January IPO now top 780%, though shares pulled back to HK$1,404 by midday amid valuation debate.
What exactly makes GLM-5.2 stand out?
The headline spec: a 1-million-token context window — the amount of text the model can process in one go, roughly several full-length books.
Zhipu is pairing the release with a GLM Coding Plan subscription, priced at roughly one-tenth of Anthropic's Claude Code / Claude Max premium tiers.
This means → Zhipu is running the same playbook as other Chinese AI firms: undercut Western models on price to poach their existing users.
The stock has surged — what do the banks say?
JPMorgan raised its target price to HK$1,400 and maintained a "buy" rating.
BofA analyst Alex Liu's rationale: the valuation premium is justified by faster recurring-revenue growth, higher talent density, stronger government and public-sector backing, and a lead in enterprise revenue.
In plain terms = the banks think Zhipu AI is expensive for a reason — it monetises fast, attracts top talent, and has government support behind it.
Why is government support seen as the key differentiator?
Wocom Securities investment manager Mike Leung: "It is widely believed that government support is critical for successfully developing or deploying LLMs on the Chinese mainland."
Zhipu's shareholders include state-owned enterprises and local governments — but the flip side is that the company sits on the U.S. Commerce Department's Entity List, barred from purchasing advanced components including semiconductors from the U.S.
This reflects a dilemma: government ties are an asset at home but a liability in the global supply chain.
Why has rival Minimax fallen so far behind?
Minimax dropped over 2% Monday to about HK$387, down roughly 71% from its March all-time high of HK$1,330.
JPMorgan has cut its target from HK$1,000 to about HK$400, rating it "neutral."
This means → the divergence from Zhipu traces back to business model: Minimax relies mainly on consumer apps and overseas expansion, lacking the government and enterprise revenue anchor.
What is the biggest risk to watch next?
BofA's Alex Liu noted the valuation gap leaves room for a "Minimax catch-up trade," potentially after the July lock-up expiry.
Wocom's Leung sees it differently: once cornerstone investors can sell, both stocks face downward pressure.
In plain terms = the July lock-up expiry is the watershed — once large shareholders are free to sell, the market will find out whether today's valuations can hold.
Content is for reference only, not financial advice.