Sudden! Over 50% Plunge!
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In a dramatic turn of events affecting the Hong Kong stock market, shares of HeziMa Intelligent plunged dramatically shortly after the trading day commencedOn this particular day, HeziMa, a technology firm specializing in AI-driven solutions, saw its stock price fall by more than 50% during intraday trading, marking a highly volatile situation for investors and analysts alike.
The roots of this collapse can be traced back to a clarification announcement made by HeziMa regarding its partnership with the Chinese automotive giant, BYDThe announcement came after media reports suggested that BYD had adopted HeziMa’s automotive-grade autonomous driving computing chips into its vehicles, which initially led to a surge in HeziMa's share priceInvestors were evidently excited about the implications of such a partnership, but subsequent clarification stated that there was no significant change in the relationship between the two companies.
Notably, BYD was set to hold a strategic event later that evening to unveil its latest advancements in intelligent driving technology, known as the “God Eye” systemThis system is anticipated to revolutionize autopilot features and could set the stage for equal access to such technology across various vehiclesIt has raised speculation that 2025 could be a pivotal year for BYD as it seeks to capitalize on these advancements.
Industry insiders have pointed out the increasing importance of autonomous driving as an application scenario for artificial intelligence (AI). As BYD accelerates its autonomous driving technologies’ penetration into the market, HeziMa is simultaneously working on reducing the thresholds for computing power and autonomy in chips, seeking to fulfill domestic demands for smart driving solutionsThis movement towards localization and independence could foster the development of home-grown autonomous driving technologies significantly.
The paradox of the situation lies in the immediate aftermath of the fall
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Although HeziMa's shares recovered somewhat after the initial crash, they still demonstrated a decline of about 35% as trading entered the afternoon session, showcasing investor uneaseJust a day before, HeziMa had experienced a remarkable rise of 12.35%, and the previous day's closing prices reflected an astonishing 37.59% increase, which had driven its market valuation up to as much as HKD 22.1 billion.
The breakdown of this situation underscores a pattern in market responsesThe July 7 press release from HeziMa confirmed that the board had noted unusual fluctuations emerging on February 7, prompting swift actionSpeculation around the supposed partnership with BYD generated earlier exuberance, particularly following claims that BYD had incorporated HeziMa’s chips into its Tengshi brand vehicles, which is seen as a prestigious move in the automotive industry.
What further complicates this relationship is the timing of the announcement of this strategic release by BYD and the subsequent clarifications made by HeziMaTheir assertion—that long-standing partnerships exist with leading Original Equipment Manufacturers (OEMs) like BYD—is crucialThe phrasing suggested that the partnership was ongoing and unaltered despite the rumors circulating in media channels.
HeziMa, founded in 2016, has positioned itself as a frontrunner in providing intelligent automotive computing chips and related solutionsTheir flagship products, the Huashan and Wudang series chips designed specifically for autonomous driving, emphasize high-performance computing capabilities tailored to meet the complex demands of smart vehiclesThe listing of HeziMa on the Hong Kong Stock Exchange has labeled it as “the first stock of intelligent automotive AI chips”, thus drawing public interest and investor skepticism alike.
The market’s reaction to forthcoming developments is indicative of a larger trend as companies like BYD introduce innovative systems such as the “God Eye.” Expectations surrounding this new release suggest it could be pivotal in creating a level playing field for advanced driving technologies across all types of vehicles
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