Hang Seng TECH ETF I

$MINIMAX-W(00100.HK)$Z.AI(02513.HK)

💥 Chinese AI Stocks CRASH ~25% - 4 Catalysts Behind the Meltdown!

Leading Chinese AI players Z.AI and MiniMax just had their worst week since listing. Both fell roughly 25% in a sharp, synchronized drop.

Four negative catalysts hit all at once.

1️⃣ US Geopolitical Accusations

US intelligence agencies accused both firms of large-scale model distillation from US frontier AI models. This raises serious geopolitical risks.

2️⃣ Price War Heats Up

DeepSeek launched its ultra-low-cost V4.1 Flash model below 1 cent per million tokens. A brutal price war threatens profit margins across the whole sector.

3️⃣ Big Dilution for Z.AI

Z.AI announced a ~US$5 billion capital raise via discounted shares and convertible bonds. This creates roughly 10% dilution pressure.

4️⃣ Valuation Cuts on Wall Street

Jefferies lowered Z.AI’s cloud valuation from 50x to 30x after H1 results showed widening net losses.

With combined first-half losses near HK$5.1 billion, the market is shifting fast. It is moving away from hype and now demanding real revenue, clear monetisation and sustainable margins.

What do you think about this sector re-rating? Will you start accumulating Chinese AI stock into your portfolio?

Not financial advice. Do your own DD☺️

I love Apple smartphones but I am not a fan of the idea of a foldable iPhone😔. And frankly speaking I will never spend over US$2,000 on a phone like that! 🫣

Let’s wait for the official news first… who knows, it might end up cheaper than we expect 🤣

Meanwhile, the Hang Seng Tech Index has been under selling pressure these past few days. I seriously hoping for a recovery soon! It feels like stock markets across the globe, gold and cryptocurrencies are all just holding their breath, waiting for the Fed’s rate decision. 🫣

Gold, silver , REITs, Hang Seng Tech …… all dropping like nobody business🫣 .

All feeling the heat after Warsh’s Jackson Hole speech.😔 Coming NFP will be scary numbers 🫣….

$XTALPI(02228.HK)

Based on the aforementioned in-depth research, we present a clear core conclusion:

The current timing calls for [maintaining positions] (and adding to positions at dips during volatile pullbacks / optimizing portfolio structure), rather than systematically reducing exposure.

The Hong Kong innovative medicine sector has completed industrial clearing and undergone a fundamental qualitative shift, entering a golden window period of advancing from historically extremely low valuations to an earnings-driven upward cycle. The core supporting logic for this judgment is as follows:

1. Valuation is at an absolute bottom; downside risk is locked in (high payoff ratio)

The valuation discount for Hong Kong biopharma assets has reached extreme historical levels. Currently, the price-to-sales ratio (PS-TTM) for Hang Seng Tech and related biotech assets is approximately 2.3x, and the P/E ratio (PE-TTM) is around 20x, both sitting in the bottom 10% of their five-year historical percentiles. Current secondary market prices have already priced in extreme pessimism regarding geopolitical frictions and macro liquidity disturbances. The risk of further significant compression in valuations is very limited, providing a solid margin of safety.

2. Industry fundamentals have crossed the break-even line; endogenous cash-generating capability is established (high certainty)

In contrast to the past phase of relying on external financing to "burn cash and paint pie charts," leading Chinese innovative drug companies have fully entered a "period of earnings realization" supported by actual sales revenue and cash flow:

Alright, AI has found me reasons to hold. I'll close my eyes and ignore XtalPi, shifting my attention back to the great crypto circle $iShares Bitcoin Trust ETF(IBIT.US) $IShares Ethereum Trust ETF(ETHA.US)

Hang Seng Tech Index tumbled over 4% intraday, dragged down by Alibaba’s 8.5% plunge, which soured sentiment across the entire sector.

Poor Minimax (-10.1%) and Z.AI (-10.8%) also got hit hard, both down double digits today😭

The Hang Seng Tech expansion from 50 to 50 stocks reduced concentration risk, dropping top 10 weightage. It will boost AI and hardware exposure while capturing fast-scaling mid-caps via revenue grow selection. Crucially, the shift would trigger passive capital inflows, driving stronger market liquidity.

Earning season giving more opportunities to all of us