Why is MiniMax stock dropping today?

The MiniMax stock price plummeted by 10% to HK$216.2 on Thursday, as a combination of macroeconomic factors and sector-wide selling actions impacted Hong Kong's AI-related companies on the first day of trading following China's National Day holiday. The drop in MiniMax's stock price was a result of major U.S. AI technology companies, such as Anthropic and OpenAI, implementing price reductions that affected their Chinese counterparts, who had previously maintained a pricing advantage.

Chinese rival ZAI Ltd also experienced a significant decline of over 6% on the same day. Investor anticipation surrounding MiniMax's upcoming AI model release further contributed to the stock's downward trend, particularly after notable new model releases from OpenAI and Anthropic in September. On the broader economic front, the surge in U.S. Treasury yields created uncertainty among global technology stocks, with Hong Kong's Hang Seng index experiencing a nearly 1% decline on Thursday.

Additionally, the resumption of mainland Stock Connect southbound flows, which had been suspended since October 1, added to the selling pressure experienced by MiniMax and other Chinese AI shares.