Chinese artificial intelligence stocks experienced a significant rally on , driven by a wave of new model releases and supportive policy signals. Hong Kong-listed Zhipu AI, also known as Knowledge Atlas Technology, led the surge, jumping 30% following the launch of its GLM-5 large-language model.
The GLM-5 model, released on , is an open-source offering with enhanced coding capabilities and the ability to handle long-running agent tasks. Zhipu AI claims the model approaches the performance of Anthropic’s Claude Opus 4.5 in coding benchmarks and even surpasses Google’s Gemini 3 Pro on certain tests. However, CNBC has noted it could not independently verify these claims.
The positive momentum extended to other players in the Chinese AI sector. MiniMax saw its Hong Kong-listed shares climb 11% after unveiling its updated M2.5 open-source model, also on . The company positions M2 as specifically designed for coding and “agentic workflows.” The Shanghai STAR AI Industry Index rose 1.7% before paring some of its gains, reflecting the broader market enthusiasm.
This flurry of activity comes as Chinese AI developers intensify their efforts to compete with their U.S. Counterparts. DeepSeek, which gained prominence last year, upgraded its flagship AI model on , increasing its context window and incorporating more current knowledge, according to a report from the South China Morning Post. Ant Group also joined the wave, releasing its open-source Ming-Flash-Omni 2.0 model, a “unified multimodal model” capable of generating speech, music, sound effects, and visuals.
The rally wasn’t limited to the AI developers themselves. Shares of UCloud Tech, a Shanghai-listed company providing computing support to Zhipu AI, surged by the daily limit of 20%. SenseTime, which has been shifting its focus towards AI software platforms, experienced a 5% increase in its Hong Kong-listed shares. This indicates investor confidence is spreading to companies supporting the infrastructure behind the AI boom.
The market’s reaction coincides with renewed government support for AI adoption. Chinese Premier Li Qiang on called for a “comprehensive push” to implement AI across various sectors, aiming to unlock the technology’s potential. This policy endorsement adds further fuel to the investment surge.
Despite the optimism surrounding domestic AI development, the broader Chinese tech sector has faced headwinds. Shares of Tencent and Alibaba, both major tech companies with significant AI divisions, fell 2.6% and 2.1% respectively on . The Hong Kong Hang Seng Tech index declined 1.7%, suggesting a divergence between the performance of dedicated AI startups and established tech giants.
A key aspect of China’s AI push is a focus on domestic chip self-sufficiency. Zhipu AI’s GLM-5 model was developed using domestically manufactured chips for inference, including those from Huawei, Moore Threads, Cambricon, and Kunlunxin. This highlights Beijing’s encouragement of domestic firms to rely on Chinese chips, particularly as the U.S. Continues to tighten export controls on high-end semiconductors. The development of GLM-5 using domestic chips is being presented as a demonstration of progress in this area.
Zhipu AI is considered one of China’s “AI tigers” – a group of promising AI startups vying for leadership in the field. The company’s GLM-5 release, along with the launches from MiniMax, DeepSeek, and Ant Group, underscores the accelerating pace of innovation in the Chinese AI landscape. The race to develop and deploy advanced AI models is clearly intensifying, both within China and in competition with the United States.
The recent developments suggest a strategic shift within the Chinese tech sector, with a growing emphasis on AI as a key driver of future growth. While challenges remain, including access to advanced semiconductors and competition from established U.S. Players, the current rally signals a renewed sense of optimism and investment in China’s AI ambitions.
