On September 14, Z.AI fell 8.32% in regular trading, trading at 727 HKD/share. The sharp decline was triggered by the company's announcement of a massive approximately $5 billion financing round, sparking significant dilution concerns among investors.

According to the announcement, Z.AI completed approximately $2 billion in share placement at HKD 714 per share — a discount of roughly 9.96% to the prior closing price — along with approximately $3 billion in zero-coupon convertible bonds with an initial conversion price of HKD 892.50, representing a 12.55% premium. The placement shares account for approximately 4.50% of the enlarged issued share capital. Proceeds will primarily fund next-generation GLM model development, self-training systems, and computing infrastructure.

Notably, this marks Z.AI's second large-scale fundraising in just two months, following a roughly HKD 31.4 billion placement completed in July. The cumulative potential equity dilution effect is substantial, intensifying short-term selling pressure. Meanwhile, analyst concerns persist over the sustainability of the company's year-end $2.4 billion ARR guidance, citing high customer concentration and uneven computing supply growth.