MiniMax Group, a Chinese AI model developer, saw its shares fall as much as 7.3% in Hong Kong on October 22, dropping below their January initial public offering price as competition intensified and investors questioned its ability to make money from the technology.

The stock fell to HK$159.3 (US$20), below its HK$165 (US$21) offering price, wiping out all gains since its trading debut. The shares had previously surged 650% to a March peak.

The selloff accelerated after MiniMax’s model release on October 19 failed to impress investors. The stock had already dropped sharply in June after the company halved the price of its flagship M3 model.

Pricing pressure extends beyond MiniMax. DeepSeek cut the price of its flagship V4 Pro model by 75%, while OpenAI and Anthropic have also slashed prices.

🔗 Source: Bloomberg

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