Shares of Chinese AI Model Firms Fall After Report of Regulatory Probe

Hong Kong-listed shares of Z.ai and MiniMax plunged on Wednesday, after The Information reported that China’s internet regulator is probing potential data leaks to Anthropic. Z.ai, also known as Zhipu, dropped 12.4%, MiniMax fell 4% and Alibaba declined 4.4%. The benchmark Hang Seng Index dipped 1%.

The Cyberspace Administration of China is investigating potential breaches of data security regulations, after Anthropic alleged in a detailed report earlier this month that Chinese AI model developers had been rerouting sensitive government and military data to Claude models, in order to extract Claude’s capabilities.

The CAC summoned all seven companies named in the Anthropic report and is zeroing in on DeepSeek and Moonshot, both of which are preparing to go public, The Information reported. The five other companies named by the report were Alibaba, Z.ai, SenseTime, MiniMax and Xiaomi.