China’s Zhipu Gets Lone ‘Short’ Call After 1,100% Rally

Hedgeye Risk Management analyst Felix Wang initiated a "short" call on Zhipu, a stock that has seen a 1,100% rally and is the top performer on the HSTECH Index this year. Wang stated on Bloomberg: The China Show that Zhipu's fair value is HK$407, citing a lack of pricing power. This weakness is exacerbated by the competitive landscape, particularly following the release of DeepSeek's V4 model, which has intensified a price war among Chinese artificial intelligence companies. The analysis suggests that Zhipu's current valuation may not be sustainable given these market dynamics and competitive pressures.