Key facts
- Zhipu AI shares surged 48% after JPMorgan Chase & Co. upgraded its price target.
- JPMorgan named Zhipu AI as an AI leader, surpassing rival MiniMax.
- Zhipu AI shares had previously fallen 45% from a May 29 high.
- MiniMax shares had fallen 52.9% from their May 29 closing value.
- Both companies face lock-up expirations for cornerstone investors in early July.
Shares in Hong Kong-listed Chinese artificial intelligence companies Zhipu AI and MiniMax have experienced significant declines, falling by approximately half over the past two weeks. This downturn precedes the early July expiration of lock-up periods for cornerstone investors. Zhipu AI closed Friday at HK$1,097 ($140), marking a 45% decrease from its intraday peak of HK$1,993 on May 29. On that same day, Zhipu AI's market capitalization briefly surpassed HK$880 billion. MiniMax concluded trading at HK$396, a 52.9% drop from its May 29 closing valuation, which had exceeded HK$260 billion. These declines occur amidst broader market trends, including a rotation toward mega-listings and a general pullback in the technology sector, as noted by reports from SPDB International and Huatai Securities. Both Zhipu AI and MiniMax were recently added to the Hang Seng Tech Index on June 8. The broader Hang Seng Tech Index itself has seen an 8.4% decrease over the last month. In a turnaround, Zhipu AI shares surged as much as 48% on Monday after JPMorgan Chase & Co. raised the stock’s price target and identified it as a leader in the AI space, ahead of rival MiniMax.