China AI Startups Surge After Holiday in Rotation From Big Tech

Chinese generative AI startups Zhipu and MiniMax Group saw shares surge in Hong Kong as markets reopened post-Lunar New Year, reflecting a sharp investor shift toward specialized AI firms. The rally marks a clear rotation away from traditional tech giants, with investors favoring pure-play AI companies over established internet platforms amid evolving market priorities. Both startups, focused on large language models and generative AI, benefited from heightened demand for advanced AI infrastructure and applications in China’s rapidly growing tech sector. The post-holiday trading spike underscores broader confidence in AI-driven innovation, despite regulatory and economic challenges facing China’s broader tech industry. Analysts attribute the trend to AI’s perceived long-term growth potential, contrasting with slower returns from mature internet businesses in a competitive market.