What happened
Hong Kong-listed AI model companies Zhipu (02513.HK) and MINIMAX-W (00100.HK) saw their shares rebound after recent declines, as market sentiment shifted.
Investment bank Jefferies cut Zhipu's cloud business price-to-sales multiple from 50x to 30x, reflecting a broader valuation reset for independent AI labs.
Short selling activity for both stocks dropped sharply between September 4 and September 8, with shorted shares and amounts roughly halving.
Why it matters
The market is pivoting from independent AI labs to tech giants with full-stack cloud capabilities, as investors reassess long-term commercialization prospects.
The retreat of short sellers suggests that bearish sentiment may be fully priced in, but policy risks remain a key factor for those betting against AI stocks.
Key facts
Zhipu's shorted shares fell from 1.3083 million on September 4 to 672,900 on September 8, with short selling amount dropping from HK$1.442 billion to HK$641 million.
MINIMAX's shorted shares fell from 1.8875 million to 857,100, with short selling amount dropping from HK$700 million to HK$288 million.
Zhipu's stock fell over 17% from above HK$1,100 at the start of September to HK$920.
What to watch next
Whether independent AI model companies can secure strategic partnerships or policy support to bolster their competitive position.
If short sellers continue to cover, it could signal a potential bottom for these stocks, but any positive policy news could trigger sharp rebounds.
