Stock Markets April 24, 2026 01:06 AM

Chinese AI Stocks Dip After DeepSeek Releases Open-Source V4 Preview

DeepSeek's V4 preview, with Pro and Flash builds and a 1 million-token context window, intensifies competitive pressure and nudges Hong Kong-listed AI shares lower

By Ajmal Hussain
Chinese AI Stocks Dip After DeepSeek Releases Open-Source V4 Preview

Shares of listed Chinese AI companies fell following DeepSeek's announcement of preview versions of its V4 model. The release, which includes both a higher-performance Pro variant and a lower-cost Flash option, was made open source and touted for an ultra-long context window and improved agent-style capabilities. Hong Kong-listed Zhipu AI (Knowledge Atlas Tech, HK:2513) and MiniMax Group (HK:0100) saw notable intraday declines as the market absorbed the news.

Key Points

  • DeepSeek released preview versions of its V4 model, offering a Pro edition and a lower-cost Flash edition to appeal to different user segments.
  • V4 is described as having an ultra-long context window up to 1 million tokens and enhanced agent-style capabilities, targeting complex enterprise and research applications.
  • The open-source release and a multi-tier product approach have been cited as factors putting downward pressure on pricing dynamics in China’s AI market, coinciding with share declines for Hong Kong-listed AI companies.

Shares in several Chinese artificial intelligence firms moved lower on Friday after DeepSeek published preview builds of its new V4 model, a development market participants said raised the sector's competitive stakes.

DeepSeek issued preview versions of V4 offering two distinct configurations - a high-performance "Pro" edition and a more affordable "Flash" variant designed to encourage broader use among developers. The company highlighted that V4 supports an ultra-long context window of up to 1 million tokens and includes enhanced agent-style functionality, positioning it to handle more complex enterprise and research workflows.

The firm released the preview as an open-source project. That decision aligns with a low-cost, high-access approach that the company says will influence pricing dynamics across China’s expanding AI market.

Market moves were visible in Hong Kong trading: Zhipu AI, listed as Knowledge Atlas Tech (HK:2513), fell 8% to HK$946 by 04:57 GMT. Shares of MiniMax Group (HK:0100) declined 4.7% to HK$818.5.

The preview release is intended to collect user feedback prior to a wider rollout. Observers have pointed to the model’s strong benchmark performance and reported efficiency gains as reasons the preview has attracted attention.


Context and market response

DeepSeek’s open-source emphasis and the availability of both premium and lower-cost model builds were presented as strategic moves to broaden adoption while altering cost structures for AI services. The preview’s technical features - notably the extended context window and agent-style enhancements - were highlighted in the company’s materials as relevant for advanced enterprise and research applications.

In Hong Kong equity trading, the announcement coincided with measurable declines in the quoted prices of two AI-related firms, reflecting investor sensitivity to shifts in competitive positioning and pricing expectations within the sector.


Further developments

The V4 preview is a sounding board for user feedback ahead of a fuller release. Attention around benchmark outcomes and efficiency indicates the market is monitoring both technical and commercial implications of the model as they unfold.

Risks

  • Increased competitive pressure from an open-source, low-cost model could compress pricing and margins for commercial AI vendors, affecting AI and enterprise software companies.
  • Market volatility for publicly listed AI firms is a possibility as investors react to changes in competitive positioning and potential shifts in pricing dynamics, impacting equity markets.
  • Uncertainty remains around how user feedback from the preview will shape the final product and its commercial deployment, affecting adoption by developers and enterprise customers.

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