Zhipu AI’s Record Hong Kong Rally Tests China’s AI Valuation Boom

Zhipu AI briefly reached HK$1,993, lifting its market capitalization above HK$880 billion, or about $112 billion. Caixin reported 2025 revenue of 724 million yuan, adjusted net loss of 3.2 billion yuan and open API ARR of 1.7 billion yuan. The rally reflects scarcity premiums for listed Chinese AI developers despite price competition and compute-cost pressure.

The impact is on workplace adoption, automation budgets and governance. Readers should watch whether the reported AI system moves from announcement or funding into measurable deployment, revenue or regulatory action.

Zhipu Rally Shows Investor Appetite For China AI Listings

Hong Kong-listed Zhipu AI surged to a record high, briefly touching HK$1,993 and lifting its market value above HK$880 billion, or about $112 billion, according to Caixin Global.

The move means the Chinese artificial intelligence developer has climbed nearly 1,600% since its January listing.

The rally highlights how scarce listed AI assets in China can command rich valuations even as the sector faces price wars and questions about profitability.

Zhipu is part of a group of Chinese model developers trying to turn enterprise demand for AI agents and model services into recurring revenue.

Revenue Growth Comes With Heavy Losses

Caixin reported that Zhipu raised API pricing by 83% while rivals cut prices to gain users.

The company’s 2025 revenue rose 132% to 724 million yuan, while adjusted net loss reached 3.2 billion yuan.

Its annual recurring revenue from an open API platform reached 1.7 billion yuan, up 60-fold from the previous year.

Those figures show both the commercial momentum and the cost pressure facing Chinese AI developers.

Demand for model-as-a-service and AI-agent applications is rising, but high compute spending and competition from players such as DeepSeek and Xiaomi keep margins under pressure.

Scarcity Premium Lifts AI Peers

The valuation surge is not limited to Zhipu.

MiniMax, another Hong Kong-listed AI developer, has also traded far above its IPO price, with revenue growth supported partly by overseas markets.

Caixin cited an analyst view that high valuations reflect a scarcity premium and limited tradable shares during lock-up periods.

For investors, Zhipu’s stock move is a signal that China’s AI market is being priced on growth potential rather than near-term earnings.

For operators, it raises the bar: developers must prove that AI agents, open APIs and MaaS products can produce durable revenue before competition and computing costs erode the gains.