To The Moon

The three major Hong Kong stock indices closed lower collectively.

As of the market close, the Hang Seng Index declined by 1.59% to 23,924.81 points, the Hang Seng Tech Index fell 1.39%, and the Hang Seng China Enterprises Index dropped 2.06%.

Across the market board, technology and internet stocks saw widespread declines.

Shares of Lenovo Group Ltd fell over 4%, while Xiaomi Corp and Meituan both dropped more than 3%.

NetEase Inc's shares declined over 2%.

In contrast, shares of Zhipu AI, often referred to as the "first global large language model stock," surged more than 26%, reaching a record high and pushing its market capitalization above 900 billion Hong Kong dollars.

The semiconductor sector demonstrated notable strength, with shares of TianShu ZhiXin jumping over 21%.

Domestic property stocks were among the biggest decliners, with Sunac China Holdings Ltd shares falling more than 7%.

Oil stocks also trended lower, with PetroChina Co Ltd shares down over 2%.

Zhipu AI Surges to New High

The significant rise in Zhipu AI shares followed the company's recent release and open-sourcing of its new flagship large language model, GLM-5.2.

On the Artificial Analysis comprehensive ranking, GLM-5.2 scored 51 points, ranking as the state-of-the-art among open-source models.

This model is reported to be the company's most powerful open-source model to date, making a 1 million token context length production-ready and advancing long-context coding capabilities.

Separately, regulatory filings show that Beijing Zhipu Huazhang Technology Co., Ltd.'s application for an IPO on the STAR Market has progressed to the "tutoring acceptance" stage, with Guotai Junan Securities and Haitong Securities acting as sponsors.

Semiconductor Sector Gains Momentum

The strength in the semiconductor sector comes amid ongoing regulatory signals that the application scope of the fifth set of listing standards for the STAR Market will be expanded to include the artificial intelligence large model industry.

Additionally, industry sources indicated that ByteDance is in discussions with TianShu ZhiXin regarding the procurement of at least 50,000 AI chips, primarily intended for inference tasks.

Property and Energy Stocks Under Pressure

The decline in domestic property stocks aligns with recent official data showing a year-on-year decrease in real estate investment growth to -24.9% for May, a further widening from the -20.1% drop in April.

While sales value and area in May showed year-on-year declines of 9.8% and 14.1% respectively, these figures were notably better than the investment and new construction data.

Analysis suggests the accelerated decline in property investment was anticipated, with other metrics still in a bottoming phase, and the broader dynamic of supply consolidation and potential demand improvement remains unchanged.

The downward movement in oil stocks followed reports that the U.S. and Iran have remotely signed a memorandum of understanding aimed at ending conflict and opening the Strait of Hormuz, which is now in effect.

Concurrently, the International Energy Agency noted in its monthly report that while the global oil market is poised for a strong recovery following supply shocks from Middle East conflicts, a full normalization of traffic through the Strait of Hormuz could take several months.

The report projected that as this critical maritime energy passage gradually reopens, global oil supply could increase by 8 million barrels per day by 2027, potentially creating a significant market surplus and providing a window to replenish depleted inventories.