AI Model Provider MiniMax Surges After Addition To Southbound Stock Connect
5 Min. Read Time
Key News
Asian equities were mixed as India and Thailand outperformed, while South Korea, Taiwan, and Hong Kong underperformed.
Overnight, investors were risk-off as both Mainland China and Hong Kong markets opened lower. However, Mainland China rebounded slightly, while Hong Kong stocks remained muted for the rest of the day.
Hong Kong's momentum faded, as the Hang Seng Tech Index closed lower by -2.3%. Yesterday's winners were last night's losers as internet stocks were lower, including Alibaba (-2.9%), Tencent (-2.6%), and JD.com (-2.1%). Both Alibaba and Tencent were large net sells, as again, Mainland investors were slight sellers of Hong Kong-listed stocks and ETFs overall, with a net sell of -$186.6 million via the Southbound Stock Connect. Decliners outpaced advancing stocks as value outperformed and growth stocks underperformed. Top subsectors included non-ferrous metals, construction materials, and household appliances, while bottom subsectors included electrical equipment, automobiles, consumer discretionary, and semiconductors.
On a positive note, in Hong Kong, AI model developer MiniMax gained +17.1% after officially being added to the Southbound Stock Connect.
Bloomberg has reported that AI model provider DeepSeek is preparing to raise prices across its AI services, a move that could mark a turning point in China’s AI landscape, where leading rivals have largely mirrored its low-cost, open-source playbook.
In Mainland China, Shanghai gained +0.6%, and Shenzhen closed nearly flat, while China's Science and Technology (STAR) Board ended higher by +0.5%. Mainland China's energy and material sectors outperformed, while technology and consumer discretionary underperformed. Top subsectors included coal, building materials, and petrochemicals, while bottom subsectors included education, electric power grid, and automobiles.
Memory chip companies came under pressure after SanDisk issued weak guidance, including Montage Technology down by -1.7% and CXMT down by -4.3%. Victory Giant's momentum continued as it closed higher by +5.8% and was among the most heavily traded stocks by value, alongside Foxconn, which gained +3.6% (up +10% the day prior).
There was chatter that Beijing is stepping up fiscal outlays and putting bond issuance to work in support of growth, with talk that more measures for the property sector could follow, such as lower policy rates, mortgage incentives, and looser purchase curbs in top-tier cities.
The National Energy Administration reported that China's annual nuclear power generation increased by +7.6% year-over-year, and accounted for 4.6% of the national power generation and 11.4% of the non-fossil energy generation in 2025.
On the trade side, reports indicated that President Trump is planning to impose tariffs of at least 15% alongside minimum import prices on polysilicon, putting pressure on the solar and semiconductor supply chains.
Last Night's Performance
| Country / Index | Ticker | 1-Day Change |
|---|---|---|
| China (Hong Kong) | HSI Index | -1.5% |
| Hang Seng Tech | HSTECH Index | -2.3% |
| Hong Kong Turnover | HKTurn Index | -8.2% |
| Hong Kong Short Sale Turnover | HKSST Index | -5.5% |
| Short Turnover as a % of Hong Kong Turnover | N/A | 0.2 |
| Southbound Stock Connect Net Buy/Sell (US $ Millions) | N/A | -186.58 |
| China (Shanghai) | SHCOMP Index | 0.6% |
| China (Shenzhen) | SZCOMP Index | 0.1% |
| China (STAR Board) | Star50 Index | 0.5% |
| Mainland Turnover | .chturn Index | -4.9% |
| Japan | NKY Index | -0.9% |
| India | SENSEX Index | 0.5% |
| Indonesia | JCI Index | -0.1% |
| Malaysia | FBMKLCI Index | -0.6% |
| Pakistan | KSE100 Index | 0.9% |
| Philippines | PCOMP Index | -0.1% |
| South Korea | KOSPI Index | -4.6% |
| Taiwan | TWSE Index | -0.5% |
| Thailand | SET Index | 0.3% |
| Singapore | STI Index | 1% |
| Australia | AS51 Index | 0.5% |
| Vietnam | VNINDEX Index | -0.0005 |
| Indicator | Hong Kong | Mainland China |
|---|---|---|
| Today's Volume % of 1-Year Average | 93% | 101% |
| Advancing Stocks | 24 | 114 |
| Declining Stocks | 69 | 181 |
| Outperforming Factors | Value | Value |
| Underperforming Factors | Growth | Growth |
| Top Sectors | Materials, Consumer Staples | Energy, Materials |
| Bottom Sectors | Technology, Consumer Discretionary, Healthcare | Technology, Consumer Discretionary |
| Top Subsectors | Non Ferrous Metals, Construction Materials, Household Appliances | Coal, Building Materials, Petrochemical |
| Bottom Subsectors | Electrical Equipments, Automobiles, Consumer Discretionary, Semiconductors | Education, Electric Power Grid, Auto, Internet |
| Southbound Connect Buys | Minimax (Very Large), KB Laminates, YOFC | N/A |
| Southbound Connect Sells | Tencent (Large), Alibaba (Large), SMIC (Large) | N/A |
| MSCI China All Shares Index | # of Stocks | Average 1-Day Change (%) |
|---|---|---|
| Hong Kong Listed | 165 | -1.54 |
| Communication Services | 11 | -2.48 |
| Consumer Discretionary | 28 | -2.44 |
| Consumer Staples | 13 | -0.23 |
| Energy | 6 | 0.27 |
| Financials | 25 | -0.22 |
| Health Care | 16 | 0.72 |
| Industrials | 22 | -2.03 |
| Information Technology | 12 | -2.43 |
| Materials | 14 | 0.24 |
| Real Estate | 7 | -1.18 |
| Utilities | 11 | -1.49 |
| Mainland China Listed | 386 | 0.07 |
| Communication Services | 8 | -1.9 |
| Consumer Discretionary | 26 | -1.42 |
| Consumer Staples | 19 | -0.26 |
| Energy | 12 | 1.92 |
| Financials | 64 | -0.25 |
| Health Care | 31 | -1.45 |
| Industrials | 58 | -1.62 |
| Information Technology | 95 | 1.17 |
| Materials | 52 | 0.97 |
| US & Hong Kong Dually Listed | Ticker | 1-Day Change (%) |
|---|---|---|
| Tencent HK | 700 HK Equity | -2.6 |
| Alibaba HK | 9988 HK Equity | -2.9 |
| JD.com HK | 9618 HK Equity | -2.1 |
| NetEase HK | 9999 HK Equity | 0.2 |
| Yum China HK | 9987 HK Equity | -0.4 |
| Baozun HK | 9991 HK Equity | -0.9 |
| Baidu HK | 9888 HK Equity | -4.4 |
| Autohome HK | 2518 HK Equity | -1.1 |
| Bilibili HK | 9626 HK Equity | -1.9 |
| Trip.com HK | 9961 HK Equity | -1.7 |
| EDU HK | 9901 HK Equity | -0.8 |
| Xpeng HK | 9868 HK Equity | -2.5 |
| Weibo HK | 9898 HK Equity | -2.8 |
| Li Auto HK | 2015 HK Equity | -3 |
| Nio Auto HK | 9866 HK Equity | -3.7 |
| Zhihu HK | 2390 HK Equity | -0.9 |
| KE HK | 2423 HK Equity | -2.4 |
| Tencent Music Entertainment HK | 1698 HK Equity | -0.5 |
| Meituan HK | 3690 HK Equity | -0.9 |
| Hong Kong's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| TENCENT HOLDINGS LTD | -2.6 |
| MINIMAX GROUP INC | 17.1 |
| ALIBABA GROUP HOLDING LTD | -2.9 |
| AIA GROUP LTD | -5.9 |
| SEMICONDUCTOR MANUFACTURI-H | -3.9 |
| Z AI CO LTD | 4.4 |
| XIAOMI CORP-CLASS B | -2.8 |
| KINGBOARD LAMINATES HLDG LTD | 1.7 |
| YANGTZE OPTICAL FIBRE AND-H | -3.1 |
| HUA HONG GRACE SEMICONDUCTOR | -3.4 |
| Shanghai and Shenzhen's Most Heavily Traded by Value | 1-Day Change (%) |
|---|---|
| ZHONGJI INNOLIGHT CO LTD-A | 0.8 |
| CXMT CORP-A | -4.3 |
| GIGADEVICE SEMICONDUCTO-CL A | -0.1 |
| EOPTOLINK TECHNOLOGY INC L-A | -0.6 |
| VICTORY GIANT TECHNOLOGY -A | 5.8 |
| CONTEMPORARY AMPEREX TECHN-A | -4.2 |
| JCET GROUP CO LTD-A | 10 |
| FOXCONN INDUSTRIAL INTERNE-A | 3.6 |
| SUZHOU DONGSHAN PRECISION-A | -0.6 |
| HENGTONG OPTIC-ELECTRIC CO-A | 3.2 |
Last Night's Exchange Rates, Prices, & Yields
- CNY per USD 6.75 versus 6.75 yesterday
- CNY per EUR 7.79 versus 7.80 yesterday
- Copper Price +0.31%
- Steel Price -0.17%
