Chinese AI startups rally even as Hong Kong's tech index falls

# Chinese AI startups rally even as Hong Kong's tech index falls

Hong Kong's stock market showed mixed momentum at the start of the trading session. The benchmark Hang Seng index slipped a modest 0.2% and the tech sector sank into the red with a 0.47% drop, yet companies focused on artificial intelligence and semiconductor manufacturing posted solid gains. Zhipu AI jumped more than 8%, MiniMax and GigaDevice gained over 5%, and Shanghai Fudan added more than 3%. The contrast points to deep shifts in investor preferences: capital is rapidly concentrating in companies that build foundational technologies, while the autonomous driving segment remains under pressure.

The reallocation is no accident. The global AI race is intensifying, and Chinese companies that own their models and architectures are becoming the focus of investor attention. Zhipu AI, the developer of the ChatGLM model, is seen as a serious competitor to Western leaders such as OpenAI and Anthropic. Amid tightening geopolitical restrictions and the push for technological independence, companies with their own neural network solutions are becoming critically important to China's economy. Investors are clearly betting on the long-term potential of these companies and ignoring short-term market swings.

At the same time, the strength in semiconductors signals another trend, different but just as important. GigaDevice and other chipmakers are getting particular attention in this scenario because hardware remains the bottleneck in deploying artificial intelligence. As companies scale their models and infrastructure, demand for high-performance chips is growing exponentially. Western sanctions on exports of advanced semiconductors to China only raise the importance of local manufacturers, giving them an unusual market position.

The slump in autonomous driving stocks is the counterpoint. WeRide lost 4%, while Pony.ai and Baidu fell more than 2%. The drop suggests the market has matured in its view of self-driving cars: this is a long-term bet with uncertain commercialization. While developers of foundation AI models and chipmakers are generating real profit right now, autonomous transport companies remain in a phase of heavy investment with no guaranteed revenue. Investors are turning away from the most capital-intensive and risky projects and preferring technologies with a more visible path to monetization.

This scenario illustrates a basic principle of modern tech investing: money flows to where there is concrete demand and a visible path to extracting value. Foundation AI models and semiconductors fit both criteria. They are needed across a wide range of applications and already generate revenue through licensing and sales. Autonomous driving, by contrast, remains surrounded by major regulatory and technological questions.

China's AI market is showing a clear turn from speculative capital to strategic investment. Companies that can shield their developments from Western competition and sanctions through technological independence earn a premium from investors. This process will likely accelerate as the geopolitical divide in AI becomes even more pronounced. For investors, the signal is clear: the future belongs not to tomorrow's speculative technologies, but to the infrastructure on which that tomorrow will be built.