Hong Kong stock market giant model leader Intelligent Spectrum has recently suffered a series of heavy blows, with a cumulative decline of over 40% in the past two trading days, leading to a market value evaporation of over 800 billion Hong Kong dollars within a month. Most institutions believe that Intelligent Spectrum’s significant decline this time is the result of a combination of the bursting of the overvalued bubble, lifting of trading restrictions, and the loss in technological competition.
The Daily Economic News reported that Hong Kong stock market giant model leader, Intelligent Spectrum (HK02513), has been hit hard once again. Following a 28% drop last Friday, the stock plummeted by 19.56% on Monday (July 20), bringing its total market value below 500 billion Hong Kong dollars. In the past two trading days, Intelligent Spectrum’s market value has plummeted by over 300 billion Hong Kong dollars, with a total market value evaporation of over 800 billion Hong Kong dollars within a month.
Another major model leader, MiniMax (HK00100), experienced an even larger decline. While it once reached a historical high of 1330 Hong Kong dollars earlier this year, on Monday the stock fell by 10.60% to 193.10 Hong Kong dollars, marking a drop of over 85% from its peak, with only a 30 Hong Kong dollar difference from its issue price of 165 Hong Kong dollars, nearing the brink of breaching that level.
The report mentioned that the stock price plunges of Intelligent Spectrum and MiniMax have transformed the “duo of heroes” into a “duo of bears.”
As for the reasons behind Intelligent Spectrum’s stock price collapse, according to the Daily Economic News, most institutions believe that this round of sharp decline is the result of the combination of bursting the overvalued bubble, lifting of trading restrictions, and losing out in technological competition. The company previously enjoyed an extremely high valuation due to the heat in the AI race, but the current mismatch between its fundamental losses and high market value suggests that this drop is a correction of the valuation returning to a reasonable level.
In early July 2026, Intelligent Spectrum and MiniMax simultaneously faced the first large-scale release of restricted shares since their IPO listings, disrupting the market supply and demand balance entirely. Intelligent Spectrum had around 25.68 million shares released from restrictions, accounting for approximately 5.76% of the company’s total share capital.
Some leading institutions also pointed out that Intelligent Spectrum’s current core dilemma lies in the “weakening of technical advantages and failure to commercialize as expected.” Compared to another major model company, Moon’s Shadow, with its rapid pace of technological iteration and open-source ecosystem layout, Intelligent Spectrum’s recent product update rate has slowed down, lacking differentiation advantages, and has yet to achieve profitable scale, resulting in a high valuation without fundamental support.
According to publicly available data, Intelligent Spectrum is still in the typical investment phase of a major model enterprise. In 2025, the company achieved operating revenue of 724 million yuan, but its research and development expenditure reached 3.18 billion yuan during the same period, leading to an annual adjusted net loss of 3.182 billion yuan.
MiniMax’s financial situation is similar to that of Intelligent Spectrum. Its 2025 financial report shows the company’s revenue of 569 million yuan, with a gross profit margin of 25.4%, but the company’s research and development expenses amounted to a whopping 253 million US dollars, three times the revenue, consistently experiencing massive losses.
A recent article by the renowned business and technology information platform Huxiu suggests that in the large model race, there may not exist a traditional moat.
The article states that the release of Moon’s Shadow K3 large model has made capital aware that there may not exist a traditional moat in the large model race. The open-source models allow customers to try them at zero cost, compressing the lead time in technology cycles to a weekly basis. In this scenario, the high valuation logic that Intelligent Spectrum previously relied on, supported by “high growth in ARR and scarcity,” is beginning to loosen.
In the field of AI large models, “ARR” refers to Annual Recurring Revenue, widely used to assess the profit potential and business value of AI companies.