Daire Mac Fadden Published October 28 2026. Anthropic's prospectus reignited the AI trade, with the Nasdaq up nearly 2% and semiconductor stocks leading the charge. Meta sold $25bn of new equity despite its stock dropping nearly 20% in two weeks.
In China, AI stocks tell a different story. While US AI firms like OpenAI and Google dominate, Chinese counterparts Z.ai and Mini Max listed on the Hong Kong Stock Exchange in January. Z.ai surged 55% in its first month, but Mini Max peaked in March and is now 50% below its IPO price.
Z.ai peaked at 732% above IPO in June before shedding 63% in a month. The divergence stems from business models: US labs charge for model access, while Chinese labs offer "open weight" models, charging for processing power instead. This has intensified price competition and raised questions about whether AI revenues can sustain heavy investment.
The Hang Seng Tech index is down 30% year-to-date, dragging down China's broader tech sector. The MSCI China index is also down 30% in 2026. Gavekal Research's Louis-Vincent Gave notes Chinese markets have fallen for 10 consecutive weeks, a historic decline.
He argues these markets served as the "funding trade" for semiconductor plays in Korea and Taiwan, sucking oxygen from the room. Chinese authorities show concern over underperformance and willingness to intervene, but a slowing economy and deflationary pressure remain the root issues. The AI boom and bust in miniature has dragged down China's tech sector amid broader market dismal returns.
Source: Financial Times Markets · Summarized by HeadlinesBriefing