Record short bets pile up against Zhipu AI and MiniMax Group as China’s AI rivalry intensifies

Short-selling activity against two of China’s most prominent AI companies has surged to unprecedented levels, reflecting deep investor anxiety about which players will survive the country’s increasingly brutal generative AI price war. Zhipu AI (Z.AI Co.) and MiniMax Group Inc., both listed on the Hong Kong stock exchange in early 2026, have seen their short volumes climb to record highs ahead of upcoming earnings reports. The bet isn’t just that AI stocks are overheated. It’s that one of these two companies is positioned far better than the other. A tale of two AI stocks The performance gap between Zhipu and MiniMax since late March has been striking. Zhipu’s stock surged roughly 170% through mid-June 2026, while MiniMax’s shares cratered nearly 50% over the same window. That kind of divergence in a sector where both companies are pursuing essentially the same market tends to attract a specific breed of investor: the pair trader. The emerging strategy is straightforward. Go long on Zhipu, short MiniMax, and pocket the spread as the gap widens. Short-selling volumes peaked in June 2026 at levels neither stock had previously seen. Zhipu recorded short volumes of 178,900 shares, value...