Shares of Hong Kong-listed AI model developers slumped on August 18, with Z.AI plunging over 13% and MINIMAX-W declining more than 10%.

The selloff comes after Z.AI released its GLM-5.3 model last week, which drew a lukewarm market response. According to Daiwa Securities research, GLM-5.3 is merely an iterative update of GLM-5.2 rather than the larger, parameter-heavy flagship model that investors had anticipated, failing to deliver any unexpected catalysts.

Meanwhile, competitive pricing pressures in the sector remain intense. The blended API price for GLM-5.2 is still 2.2 times higher than DeepSeek V4 Pro's new off-peak rate, and pricing for GLM-5.3's API has yet to be confirmed. Daiwa also noted that some investors are reluctant to add positions in Z.AI ahead of its upcoming earnings release, citing potential mid-term profit volatility.

On the other hand, MINIMAX-W, which is scheduled to publish its interim results on August 26, faces similar investor caution stemming from earnings uncertainty.