Hong Kong-Listed AI Model Stocks Slide; Zhipu Falls Over 10% Intraday

Zhipu, the Chinese AI company known for its GLM series of large language models, saw its stock price drop more than 10% during intraday trading in Hong Kong on July 14. Other major AI model stocks in the market also declined, reflecting a broad sell-off in the sector.

As one of the most prominent pure-play AI companies listed in Hong Kong, Zhipu's share price movements are closely watched as a barometer of investor sentiment toward China's big model industry.

The sell-off comes after a sustained rally in AI concept stocks, raising questions about whether the market had priced in overly optimistic expectations for near-term commercialization of large language models.

Industry observers note that while technical advances in AI continue at a rapid pace, the path to sustainable profitability remains uncertain for most foundation model companies, given the high costs of training and inference infrastructure.

Zhipu's ability to scale its enterprise business and maintain its competitive edge in model capabilities will be key factors influencing its long-term stock performance.