Southbound Funds Buy Zhipu and MiniMax for Two Consecutive Months

Southbound funds have pushed domestic large model companies to the top of the Hong Kong stock buying list for two consecutive months. In July, Zhipu became the most purchased Hong Kong stock by southbound funds, surpassing Alibaba and Tencent. In August, MiniMax took the crown, with a monthly purchase of HKD 10.6 billion, also exceeding Alibaba and Tencent. MiniMax officially entered the Hong Kong Stock Connect on August 6, with a net purchase of HKD 2.697 billion by southbound funds on the first day, followed by another HKD 2.226 billion the next day, totaling over HKD 4.9 billion in two days, with a shareholding ratio quickly reaching 9.7%. Zhipu entered the Hong Kong Stock Connect on June 8, receiving a net purchase of HKD 920 million from southbound funds on its first day, followed by a net purchase of HKD 13.7 billion over five consecutive trading days in the first week of July, and another HKD 10.6 billion the following week. Currently, southbound funds hold about 11% of Zhipu's shares. Both companies are in a phase of high growth and high losses; MiniMax reported revenue of USD 116.6 million in the first half of the year, a year-on-year increase of 283%, but incurred a loss of USD 358 million; Zhipu's revenue during the same period was approximately CNY 954 million, a year-on-year increase of about 400%, with a loss of approximately CNY 2 billion.

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