Chinese AI startup shares rise despite decline in Hong Kong tech index

# Chinese AI Startups' Stocks Rise Despite Hong Kong Tech Index Decline

Hong Kong's stock market demonstrated complex dynamics at the beginning of the trading session: while the main Hang Seng index modestly declined by 0.2%, and the technology sector plunged into the red with a drop of 0.47%, companies specializing in artificial intelligence development and semiconductor manufacturing showed confident growth. Zhipu AI soared by more than 8%, MiniMax and GigaDevice gained over 5%, and Shanghai Fudan added more than 3%. This contrasting scenario reflects deep shifts in investment preferences: capital is rapidly concentrating on companies that create fundamental technologies, while the autonomous driving segment remains under pressure.

This redistribution of investment is not accidental. The global race in artificial intelligence is intensifying, and Chinese companies that own their own models and architectures are becoming the center of investors' attention. Zhipu AI, which developed the ChatGLM model, is perceived as a serious competitor to Western leaders like OpenAI and Anthropic. Under conditions of intensifying geopolitical restrictions and the pursuit of technological independence, companies with their own neural network solutions are acquiring critical importance for the Chinese economy. Investors clearly are betting on the long-term potential of these companies, ignoring short-term market fluctuations.

In parallel, the strengthening of the semiconductor segment signals another, but no less important trend. GigaDevice and other chip manufacturers are receiving special attention in this scenario precisely because hardware remains a bottleneck in artificial intelligence deployment. As companies scale their models and infrastructure, demand for high-performance chips is growing exponentially. Western sanctions on supplies of advanced semiconductors to China only strengthen the significance of local manufacturers, creating them an unusual market position.

In contrast, there is a collapse of stocks of autonomous driving companies. WeRide lost 4%, Pony.ai and Baidu declined by more than 2%. This decline reflects the market's mature understanding that autonomous vehicles are a long-term bet with uncertain commercialization. While developers of foundational AI models and chip manufacturers generate real profits right now, autonomous transportation companies remain in a phase of intensive investment without guaranteed income. Investors are turning away from the most capital-intensive and risky projects, preferring technologies with a more visible monetization trajectory.

This scenario reveals a fundamental principle of modern technology investing: money rushes to where there is concrete need and a visible path to value extraction. Foundational AI models and semiconductors fall into both categories — they are necessary for countless applications and already generate income through licensing and sales. Autonomous driving, by contrast, remains surrounded by huge regulatory and technological questions.

The Chinese AI market demonstrates a clear turn from speculative capital to strategic investment. Companies that can protect their developments from Western competition and sanctions through technological independence are receiving a premium from investors. This process will likely accelerate as geopolitical divisions in AI become even more pronounced. For investors, the signal is clear: the future lies not with speculative technologies of tomorrow, but with the infrastructure on which that tomorrow will be built.