Z.ai shares ended Monday trading in Hong Kong down 8% at HK$729 after a volatile session. The stock dropped by as much as 10.5% earlier in the day following the launch of a discounted share placement, which placed fresh pressure on the company's equity valuation.

The share issuance is part of a $5 billion fundraise that includes $3 billion in convertible bonds to develop next-generation GLM AI models. Z.ai is allocating 60% of the net proceeds to a "Fully Self Training" system for recursive self-improvement, while 15% is designated for strategic investments and 25% for operating capital.