MiniMax shares rose sharply on their first day of joining the Stock Connect program, which enables mainland Chinese investors to buy stocks listed in Hong Kong.

Shares of the Shanghai-based company rose 17% to 297.80 Hong Kong Dollars, equivalent to US$37.97, in morning trading, outperforming the Hang Seng Tech Index's 2.1% decline.

"We view the entry as a positive," Jefferies analysts said in commentary. The bank pointed to the artificial-intelligence company's "highly cost-efficient model compared to peers" and a coming model release, they said.

Brian Freitas of Periscope Analytics said in a note on Smartkarma that the stock is trading significantly lower from its highs. "There should be a lot of interest from mainland investors," Freitas said.

The stock has fallen sharply since peaking at HK$1,330 in March as competition in the AI sector intensifies.

AI stocks remain the hottest trade in Hong Kong. Z.ai and MiniMax, which both listed in the city in January, remain two of the most closely followed in the market despite their recent pullbacks. Other Chinese AI startups, including Moonshot AI and StepFun, are also preparing listings of their own.