Why is MiniMax stock dropping today?

MiniMax stock experienced a significant drop of 10.0% to HK$216.2 on Thursday, amidst a combination of macro pressures and sector-wide selling. The decline occurred on the first trading day following the mainland's National Day holiday. The pricing strategies of major U.S. AI frontier labs, particularly Anthropic and OpenAI, were contributing factors to the pressure on their Chinese rivals.

Chinese competitor ZAI Ltd also saw a decline of over 6% on Thursday. Investor anticipation for Minimax's upcoming AI model release, in the wake of high-profile launches from OpenAI and Anthropic in September, further weighed on the stock's value. Macro economic conditions also played a role, with rising Treasury yields causing concern among global technology stocks, including Hong Kong's Hang Seng index, which fell nearly 1% on Thursday.

The resumption of Stock Connect southbound flows from the mainland, which had been suspended since October 1, added to the overall selling pressure.