Hong Kong stocks AI short sellers retreat; Zhipu's shorted shares drop over 90% since the beginning of the year

Caixin April 7 News (Editor: Hu Jiarong)
Since the beginning of 2026, the Hong Kong stock AI sector has become the most eye-catching main theme in the market, among which MINIMAX-W(00100.HK) and Zhipu(02513.HK) stand out as leaders in domestic large models. As of April 1, the two companies have seen cumulative increases of 475.45% and 570.40% respectively from their issuance prices, both ranking among the top in Hong Kong stocks’ year-to-date gains.

Note: MINIMAX

Note: Zhipu

It is worth noting that although both companies were simultaneously included in the Hong Kong Stock Exchange’s short-selling trading list on February 27, market enthusiasm for short-selling did not heat up as expected. Instead, there was a rare phenomenon of short positions continuously and significantly retreating from high levels. This divergence has sparked widespread discussion in the market.

Active Short Selling of the AI Double Heroes Significantly Cools Down, Short Sellers’ Power Rapidly Shrinks

Since being included in the short-selling list on February 27, both companies’ short-selling data experienced a “rise then fall” process, but overall, the trend shows a rapid withdrawal of short sellers’ strength. MINIMAX-W: Short-selling scale fell by over 75%.

Initially, MINIMAX experienced a brief increase in short-selling volume after being included, with the number of shorted shares reaching a peak of 925.2k shares, corresponding to a short-selling amount of HKD 665 million. However, the active short-selling continued to decline, and by last Thursday, the number of shorted shares had fallen back to 157.2k, an 83.01% decrease from the high; the short-selling amount dropped to HKD 150 million, a 77.44% decrease from the peak.

Zhipu’s short-selling data changed even more dramatically. After being included in short-selling trading, its shorted shares once surged to a peak of 1.51M shares, with a short-selling amount of HKD 952 million. But by last Thursday, the number of shorted shares had plummeted to 47.5k, a 96.85% decrease from the high; the short-selling amount sharply fell to HKD 37 million, a 96.11% drop from the peak, with short-selling activity almost hitting zero.

Four Core Reasons Drive Short Sellers to Retreat

The sharp cooling of short-selling data is not accidental but the result of multiple factors including fundamentals, valuation, capital structure, and market perception working together.

Technical Breakthroughs and Commercialization Progress Surpass Expectations, Fundamentals Continuously Strengthen

Since being included in the short-selling list, both companies have continued to release positive signals, repeatedly verifying their technological leadership and commercialization potential:

MINIMAX: On March 18, released its new generation flagship large model M2.7, first demonstrating the “model self-evolution” path, capable of handling 30%-50% of work in some R&D scenarios, pushing AI from passive execution toward active evolution.

Zhipu: On April 1, submitted its first performance report for listing, and also released major updates to the GLM-5 series models. The stock price surged 32.44% on the same day, with a total market value surpassing HKD 400 billion, setting a new record high.

The stock price previously experienced a deep correction, significantly reducing the cost-effectiveness of short-selling.

Both companies underwent a fierce adjustment in late February: Zhipu dropped from a high of HKD 725 on February 20 to a low of HKD 556.5, a maximum decline of 23.24%; MINIMAX fell from HKD 970 to HKD 753.5, a maximum decline of 22.32%.

After this adjustment, valuation pressures on both companies were somewhat alleviated, and the safety margin for short-selling greatly narrowed. Meanwhile, since stock prices remained in the high historical range, potential losses faced by short sellers increased significantly, further suppressing their willingness to short.

Capital Herding Effect Is Obvious, Short Sellers Face Forced Covering Risks

As the core targets of the Hong Kong AI sector, MINIMAX and Zhipu attracted a large amount of capital holding collectively. Southbound funds and institutional investors continued to increase their positions, forming strong bullish forces. Under this capital structure, once positive news emerges, stock prices tend to rise rapidly, and short sellers face serious forced covering risks.

Market Perception Shift: From “Speculative Bubble” to “Long-term Growth”

With the continuous maturity of domestic large model technology and accelerated commercialization, market perception of the AI track is undergoing profound changes. Investors are gradually shifting from early “concept hype” thinking to “long-term growth” thinking, paying more attention to companies’ technological barriers, commercialization capabilities, and long-term development potential. This cognitive shift makes short-selling strategies based on short-term overvaluations difficult to gain market approval, and the short-selling power naturally diminishes.