Wall Street Banks Shut Out of $5.8 Billion Chinese AI Fundraising Spree in Hong Kong

Lock-up expiry: On July 8, 25.6 million shares were freed from a six-month cornerstone investor lock-up — nearly 6% of Zhipu's outstanding shares ^R. Reports indicated nearly 70% of cornerstone investors signaled intentions to hold long-term.

Stock performance: Zhipu shares surged over 13% on lock-up day, closing at HK$2,032 (up 11.3–13% depending on the report) ^S. Since its January 2026 IPO at HK$116.20 per share, the stock has gained roughly 1,300%–1,700%, making it one of Hong Kong's best-performing tech listings ^R.

MiniMax's Lock-Up Expiry and M3 Pro Model

Lock-up expiry: MiniMax Group (0100.HK) faced its own six-month lock-up expiry in early July 2026, with a potential increase in free float from roughly 5% to over 50% if all locked-up shares were released ^L. On the first day of lock-up expiry, MiniMax shares plunged as much as 18% as roughly 45% of issued share capital became tradeable ^C.

M3 Pro — 2.7 trillion-parameter model: Reuters reported on July 8 that MiniMax is developing a large language model with 2.7 trillion parameters — the largest open-weight AI model from a Chinese firm and possibly the largest in the world ^R. The model, internally codenamed M3 Pro, could be released as open source as early as Q3 2026 ^RT.

Context: MiniMax already released MiniMax M3 on June 1, 2026, a 428B-parameter MoE model with a 1-million-token context window that scored 59.0% on SWE-Bench Pro ^X. The M3 Pro would more than six times its size in parameter count ^T.

Broader Trend: Chinese Banks Dominate Hong Kong's Equity Markets

Exclusion of Wall Street: Bloomberg's July 9 report directly stated that Wall Street banks were "largely absent" from this $5.8 billion AI fundraising week, while Chinese banks like CICC handled the mandates ^B.

Broader HK fundraising boom: Chinese technology firms raised a combined HK$136.23 billion ($17.38 billion) in Hong Kong in 2026 through July 9, across AI, semiconductors, and advanced manufacturing ^R.

Geopolitical driver: The shift reflects deepening US-China regulatory divergence. Washington has tightened restrictions on foreign access to advanced US AI models, while Beijing encourages domestic AI champions to list in Hong Kong rather than on US exchanges. Over 85% of Chinese AI-related companies that went public in 2026 chose Hong Kong ^K.

CICC's rising role: CICC has been the go-to arranger for Chinese AI blockbuster deals in Hong Kong, including Zhipu's $4 billion placement, as Chinese issuers increasingly favor domestic banks that are less exposed to US sanctions risk and extraterritorial enforcement.

Key takeaway: The $5.8 billion AI fundraising week in Hong Kong marks a clear structural shift — Chinese banks are displacing Wall Street as the dominant intermediaries for Chinese tech capital formation in Hong Kong, driven by geopolitical tensions, US export controls, and Beijing's push for domestic financial infrastructure. Zhipu's $4 billion placement (priced at a 13% discount via CICC) went through smoothly with shares rising on lock-up day, and MiniMax simultaneously advanced plans for a 2.7 trillion-parameter open-source model — signaling that China's AI sector continues to scale aggressively despite (or partly because of) Washington-Beijing regulatory divergence.