Zhipu (2513.HK) tumbled 8.25% in Hong Kong trading to HK$661.50. The drop followed the company's announcement of an approximately $5 billion financing package, including a $2 billion share placement and $3 billion in zero-coupon convertible bonds. HSBC estimates full conversion of the bonds would dilute existing shareholders by 5% to 6%. Societe Generale cut its price target by more than 15%, intensifying concerns about repeated capital raisings.
Pressure on the stock was compounded by broader weakness in the global AI sector. Anthropic's CEO urged a slower pace for frontier AI model development, and OpenAI confirmed it will not go public in 2026. Zhipu has now declined for 10 straight sessions, with cumulative losses nearing 40%. Southbound flows via Stock Connect net bought approximately HK$1.2 billion of the stock on Monday, indicating some investors are stepping in at lower levels.