Hong Kong AI Stocks Plunge as MiniMax Falls Below IPO Price

Hong Kong AI-model shares sold off on October 22, with the Hang Seng Index down more than 2% and the Hang Seng Tech Index down about 4.38%. MiniMax fell below its HK$165 IPO price intraday, while MiniMax and Zhipu shares were each down more than 80% from their historical highs. The move came as rising geopolitical risks pushed Brent crude close to $110 per barrel, reviving concerns over inflation and the interest-rate path. Gold was about $4,115 per ounce, Bitcoin about $84,284, and Ether about $2,476, with all weakening alongside Hong Kong AI shares. The source frames the decline as broader than an AI-sector pullback, as markets reassess valuations for high-growth companies. Model developers face competition, model price cuts, research spending and commercialization pressures that can affect future profitability. Zhipu's previous largest long exited with an estimated $2.7 million loss, while its current largest long was showing an estimated $1.37 million unrealized loss. Key areas to watch are Hang Seng Tech flows, AI valuations, and whether model companies can demonstrate revenue and profit delivery.