Alibaba Shares Fall 4.9% While Zhipu Surges 43%
Alibaba shares dropped 4.9% as investors shifted into pure-play AI names like Zhipu, which surged 43% after rolling out updated models ahead of Lunar New Year. Despite Qwen processing 130 million holiday orders, Alibaba was summoned by regulators to rein in promotional spending alongside other tech giants.
1. Surge in Pure-Play AI Stocks
Hong Kong’s reopening session saw capital rotate decisively into China’s pure-play AI firms, with Zhipu rising 43% and MiniMax climbing 15% after aggressive model updates and feature rollouts ahead of Lunar New Year, positioning both before DeepSeek’s next major unveiling.
2. Divergence in Big Tech Performance
Alibaba shares fell 4.9% and Tencent declined 2.1% as investors took profits from diversified platforms, despite Alibaba’s AI app Qwen processing 130 million orders during the holiday campaign and Tencent’s Yuanbao app surpassing 50 million daily active users.
3. Regulatory Intervention on Promotions
Chinese authorities summoned Alibaba, Baidu, Tencent and JD.com to curb involution-style promotional practices, following estimates that Alibaba and Meituan provided about $870 million in consumer incentives over the holiday and Tencent planned $145 million in spending.