Why is ZAI stock slipping today?

ZAI Co Ltd stock slipped 1.7% to HK$490.4 on Monday amid a broader, sustained decline in Chinese artificial intelligence stocks, with a new model release from rival MoonShot adding to concerns over increased competition in the sector.

Moonshot had late last week unveiled the Kimi K3.1 Pro, the first in a new line of advanced models aimed at being better at financial research and coding. The model is a follow up to Moonshot’s K3 model released in July, which essentially put the company on the map for its advanced models.

Moonshot’s release added to concerns over more competition for ZAI and Minimax, with the two already facing pressure from recent price cuts by their Western rivals.

Monday’s losses also came amid a broader, protracted selldown in Chinese technology stocks, amid growing questions over the long-term returns on the billions of dollars invested in AI development.

The Hang Seng index added 0.6% on Monday amid some bargain buying.