On September 24, Z.AI (02513.HK) fell 3.15% in regular trading, trading at 629.5 HKD/share, with turnover of 18.94 billion HKD. The decline extends a steep selloff that has seen the stock drop over 16% across three consecutive trading sessions.

The continued weakness stems from lingering fallout over the ZCode data privacy controversy. Z.AI's AI coding tool ZCode was found to have silently uploaded users' full code repositories to cloud servers without consent. Although the company has completed remediation, open-sourced ZCode on GitHub, and engaged the China Academy of Information and Communications Technology and NSFOCUS for independent security audits confirming zero data retention, market confidence remains fragile. Notably, Chengming Technology's formal accountability letter — demanding explanations on data deletion, cross-border transmission, and potential third-party sharing — remains unresolved.

Adding to the pressure, Anthropic and OpenAI recently unveiled new low-cost AI models, intensifying concerns over competitive headwinds facing domestic AI companies and further dampening sector sentiment.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)