Alibaba Gains in Hong Kong While Zhipu and MiniMax Remain Under Pressure

Kimi's K3 and the Implications for Hong Kong's AI Stocks

At the same time, Bloomberg reported, citing people familiar with the matter, that Moonshot is preparing an IPO in Hong Kong that could take place within the next six months. The company has circulated a shareholder resolution for approval. For the Hong Kong listing, Moonshot is dismantling its offshore VIE structure and replacing it with a joint venture model that meets the requirements of Chinese securities regulators.

Chinese competitor DeepSeek is also preparing a mainland China listing, according to a Reuters report last week, raising fresh capital at a valuation of roughly USD 74 billion. DeepSeek closed its first external funding round in June, raising approximately USD 7 billion at a valuation of around USD 50 billion, with participation from Tencent and CATL, among others. An IPO application could be filed by late 2026 or early 2027, according to Bloomberg.

At Zhipu, the free float, which shrank to around 13.5 percent following a capital increase in early July 2026, further amplifies such swings, according to Bloomberg. Zhipu AI (international brand Z.ai) and MiniMax were listed on the Hong Kong Stock Exchange on January 8 and 9, 2026. Shares of both companies had, driven by earlier model releases, traded at one point more than 500 percent (Zhipu) and roughly 470 percent (MiniMax) above their issue prices.

Zhipu and MiniMax Under Pressure

After Friday's Kimi K3 launch, however, prices collapsed. Zhipu AI shares plunged 28.49 percent that same day to HKD 1,107, while MiniMax fell 15.62 percent to HKD 216. Traders described the market reaction as a "new DeepSeek moment," pointing to the sell-off following the release of DeepSeek's R1 model in early 2025.

At the start of the week, losses continued for individual names. Zhipu shares dropped a further 13.10 percent intraday at the start of the week to HKD 962.00. MiniMax shares lost 8.94 percent to HKD 196.70. Bitcoin also came under pressure amid risk aversion following the Kimi K3 announcement, while in the US Nvidia and AMD slipped; the Nasdaq lost 1.5 percent, Taiwan's benchmark index lost more than 6 percent, and Japanese equities fell 4 percent.

Moonshot Valuation and Investor Base

Moonshot is concurrently closing a private funding round that could value the three-year-old company at more than USD 30 billion, up from roughly USD 4.3 billion in December. The round, expected to raise around USD 2 billion, is led by Meituan; other investors include Alibaba, Tencent, and China Mobile. CEO Yang stated that Moonshot, with liquid assets of more than CNY 10 billion (approximately USD 1.4 billion), is not under pressure.

The company was founded in 2023 by former Tsinghua professor Yang Zhilin. Moonshot's annualized recurring revenues (ARR) rose from USD 200 million in April to USD 300 million in June, according to company figures. Due to high demand for Kimi K3, Moonshot temporarily suspended new sign-ups. Alibaba's presentation of a preview version of its own AI model Qwen Max 3.8 also supported optimism.

The release of the full open-source model of Kimi K3 is scheduled for July 27. According to Bloomberg, DeepSeek is also working with auditors on full financial reports by the end of December 2026. Both companies are preparing secondary listings in mainland China, with Zhipu targeting the Star Market (Science and Technology Innovation Board).

Monday's trading thus reflected the tension between new IPO fantasies and the correction of previously overheated stocks. While Alibaba's stake in Moonshot acted as a positive catalyst, the already-listed Chinese AI companies Zhipu and MiniMax suffered from profit-taking.

This report from finanzen.ch is part of an ongoing observation of the AI stock markets in Hong Kong and mainland China. Author Claudia Stephan classifies the developments as a "partial recovery," as the broader sector remains under the impression of the Kimi K3 model launch.