Hang Seng Index Slides 165 Points as AI Model Leaders Plunge; WuXi Biologics Rallies
SingTao · 1 SOURCESabout 3 hours ago2 MIN
Summary
The Hang Seng Index retreated 165 points or 0.65% to 25,287 in Tuesday's morning session, with turnover reaching HK$136.5 billion . Heavyweight tech stocks broadly declined, though Alibaba (9988) managed a 1.72% gain as a lone bright spot . The AI large model sector took the heaviest blows, with Zhipu (2513) crashing 16.63% to HK$1,003 and MiniMax (100) tumbling 12.22% to HK$293 . The selloff followed competitor DeepSeek's announcement of API pricing adjustments, raising concerns about intensifying competition in the sector . JPMorgan warned that the large model race will accelerate differentiation based on capability and cost advantages . In contrast, biotech stocks bucked the trend, with WuXi Biologics (2269) climbing 5.03% and GenScript (1548) surging 7.59% to HK$28.06 . Zhongjin Securities noted that GenScript's interim adjusted net profit surged 203% year-on-year to US$62.5 million, driven by strong growth in AI-driven drug discovery services and improved operational efficiency .
Key Points
- Hang Seng Index closed morning session at 25,287, down 165 points (0.65%), with HK$136.5 billion turnover
- Hang Seng Tech Index fell 95 points (1.99%) to 4,686; Alibaba rose 1.72% while Tencent dropped 1.79% and Meituan fell 3.59%
- Zhipu (2513) plummeted 16.63% to HK$1,003 and MiniMax (100) sank 12.22% to HK$293 amid DeepSeek pricing concerns
- JPMorgan flagged accelerating differentiation in AI model sector based on capability and cost disparities
- WuXi Biologics (2269) led gains with 5.03% rise; GenScript (1548) surged 7.59% on super profit forecast
Why It Matters
The sharp selloff in AI model stocks reflects growing market concerns about the sustainability of valuations in China's crowded large model sector, as price competition intensifies following DeepSeek's aggressive API pricing strategy . For Hong Kong investors, the divergence between struggling tech stocks and resilient biotech names highlights shifting risk appetites and the search for defensible growth stories in an increasingly uncertain market .
The sharp selloff in AI model stocks reflects growing market concerns about the sustainability of valuations in China's crowded large model sector, as price competition intensifies following DeepSeek's aggressive API pricing strategy . For Hong Kong investors, the divergence between struggling tech stocks and resilient biotech names highlights shifting risk appetites and the search for defensible growth stories in an increasingly uncertain market .