Zhipu has been the best-performing stock on the Hang Seng Tech Index this year. One veteran analyst thinks that’s exactly the problem.
Felix Wang of Hedgeye Risk Management is recommending a short position on the Chinese AI developer, pegging its fair value at HK$407. That’s roughly 70% below where shares currently trade, in the range of HK$1,400 to HK$1,500.
From IPO darling to bubble territory
Zhipu, the company behind the GLM series of large language models, went public on January 8 at approximately HK$116 per share. In less than six months, the stock surged more than 1,100%, hitting intraday peaks above HK$1,600 in mid-June.
Wang described Zhipu as “one of the biggest bubbles I’ve ever seen,” citing eroded pricing power in the wake of DeepSeek’s aggressive moves.
