Z.AI's stock surged 5.03% during intraday trading on Wednesday, rebounding sharply after a prior session decline of over 5% triggered by profit-taking.

The rally was fueled by the company's announcement of a comprehensive upgrade to its AI coding product ZCode, introducing four new features—Goal, Subagents, Remote Control, and Idle Tasks—and surpassing 1 million total users. The upgrade elevates ZCode's capabilities from conversational assistance to autonomous delivery of complex tasks, with internal benchmarks showing GLM-5.2 paired with ZCode outperforming combinations with Claude Code in cross-file, multi-step collaborative tasks.

Capital flowed back into the stock as the short-term oversold condition combined with the product catalyst and continued digestion of a bullish institutional outlook, including Morgan Stanley's recent 72% target price raise to HKD 1,700.