**Chinese AI Stocks Surge on New Model Launches and Policy Support**
Chinese artificial intelligence stocks experienced a significant rally on Thursday, fueled by a wave of upgraded AI models from various companies and renewed emphasis from top policymakers on accelerating the technology’s adoption.
Zhipu AI, a prominent player listed in Hong Kong and trading as Knowledge Atlas Technology, saw its shares soar by 30%. This surge followed the release of its latest large language model, GLM-5. The company claims GLM-5, an open-source model, boasts enhanced coding capabilities and can handle extended agent tasks. Zhipu AI has stated that GLM-5 rivals Anthropic’s Claude Opus 4.5 in coding benchmarks and outperforms Google’s Gemini 3 Pro on certain tests, though these claims could not be independently verified.
Another key player, MiniMax, also witnessed a substantial jump in its Hong Kong-listed shares, climbing 11%. This follows the recent unveiling of its updated M2.5 open-source model, which the company highlights as being “built for Max coding & agentic workflows” and features improved AI agent tools.
This wave of innovation and investor enthusiasm comes as the competitive landscape in AI intensifies. Chinese developers are actively working to close the gap with their U.S. counterparts through a rapid succession of new model and agent releases. The positive investor sentiment generated by these advancements has had a ripple effect across the sector. For instance, UCloud Tech, a provider of computing infrastructure that supports Zhipu AI, saw its Shanghai-listed shares surge by the daily limit, reaching a 20% increase on Thursday. SenseTime, which has pivoted from facial recognition to AI software platforms, experienced a 5% rise in its Hong Kong stock. The Shanghai STAR AI Industry Index also saw gains, climbing 1.7% before some moderation.
Further bolstering the narrative, DeepSeek upgraded its flagship AI model on Wednesday, enhancing its context window and incorporating more current knowledge, according to reports. Ant Group also entered the fray with the release of its open-source AI model, Ming-Flash-Omni 2.0, a unified multimodal model capable of generating speech, music, sound effects, and visuals. Earlier in the week, ByteDance launched Seedance 2.0, the latest iteration of its AI video generation app, which had previously triggered a rally in Chinese AI app stocks. There are also reports that ByteDance is collaborating with Samsung to develop its own in-house AI chips.
The bullish sentiment for AI startups is occurring against a backdrop of mixed performance for larger Chinese tech giants with AI divisions. While pure-play AI companies are gaining traction, giants like Tencent and Alibaba saw their shares decline by 2.6% and 2.1% respectively. The broader Hong Kong Hang Seng Tech index also experienced a dip of 1.7%.
This dynamic contrasts with the volatility seen in the U.S. AI market, where investors have oscillated between optimism regarding AI’s transformative potential and concerns over high valuations. Market strategists suggest that while caution is warranted, the current environment presents opportunities. Investors appear to be adopting a more discerning approach, focusing on established cloud and AI infrastructure providers whose significant investments are underpinned by solid earnings rather than extensive leverage.
Analysts also note that Chinese technology firms have adopted a more capital-efficient approach to AI development compared to their U.S. rivals, with a primary focus on the domestic market. This strategic positioning, combined with government support for AI adoption and talent development, signals a concerted effort by China to establish a strong foothold in the global AI race.
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