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Zhipu fell four times as far as Tencent on Beijing's DeepSeek data probe

The Cyberspace Administration sent officials into DeepSeek and Moonshot AI to ask whether user requests were routed through Anthropic's Claude. Hong Kong investors sold the listed model developers hardest.

The Investor · Invest desk

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What happened

  • Bloomberg, citing The Information, reported on the 23rd that Cyberspace Administration officials had gone into DeepSeek and Moonshot AI to interview employees about data security.
  • Zhipu AI closed 12% lower on the Hong Kong exchange and MiniMax 6.8% lower once the report circulated.
  • Alibaba fell nearly 5%, Xiaomi about 3.8% and Tencent 2.9%, the diversified companies that also run their own models.

Why it matters

  • Who's exposed exposure Broadcom's exposure is in future orders: up to 90% of state-owned enterprise switching is already sold, existing equipment stays in place, and private operators fall outside any guidance.
  • What it limits constraint Until the scope is known, a Chinese lab has to price the possibility that sending inference requests to a foreign model is illegal, and Mironov said that uncertainty risks slowing model development.
  • Who has to decide decision State data centre buyers must now choose between ordering Broadcom switches and waiting for informal guidance that may or may not arrive, so procurement can stall either way.

One report moved Zhipu AI 12% and Tencent 2.9% [6][7]. Divide one by the other and the selling sorted Hong Kong by how much of each company is a language model. Zhipu fell about four times as far as Tencent, and MiniMax about two and a half times [19]. DeepSeek and Moonshot, the two companies being asked the questions, have no share price in the report [8].

The allegation is about traffic. According to The Information, Chinese officials are concerned that DeepSeek and Moonshot violated the country's data security law by routing user requests through Claude, the model built by Anthropic, and that sensitive material from the Chinese military, police and businesses was exposed to the U.S. side [1]. People familiar with the matter told the outlet that the inquiry is trying to establish whether violations occurred and how serious they were [3].

Leonid Mironov, a portfolio manager at Gavekal Capital, told Bloomberg that "investors are afraid Beijing will step up its scrutiny of the AI industry" [9]. He said the specific scope of regulation remains difficult to gauge, and that the uncertainty has weakened market sentiment and risks slowing the pace of AI model development in China [10].

The other count running this week is a hardware inventory. The State-owned Assets Supervision and Administration Commission has spent recent weeks surveying how many Broadcom switches sit in state-owned data centres, the Financial Times reported on the 22nd, citing multiple sources [11]. One of those sources said the commission could issue informal guidance telling those operators to use fewer of them [12]. One estimate puts Broadcom's penetration at state-owned Chinese enterprises as high as 90% [13]. An official at a data centre rack manufacturer said restrictions would not apply to data centres run by private companies such as ByteDance and Alibaba, and that existing equipment would not be ripped out [14]. What is at risk, then, is the next purchase order from one customer segment [20]. The FT described that market as capable of generating billions of dollars of revenue as Chinese demand for AI training grows [15].

Nvidia's high-performance switches are already effectively blocked from Chinese state-owned data centres, while Broadcom's remain widely in use [16]. SASAC is also examining whether Broadcom used its market power to bundle other products or pressure customers into ordering tens of thousands of switches at once [17]. Any substitution depends on H3C Technologies and Ruijie Networks getting parts, and both are seen as having faced constraints sourcing components from domestic suppliers including Huawei [18].

The narrow version of this story is a finding that names two firms and one routing practice, in which case the 12% is sentiment and it comes back. The wide version is a rule about where inference requests may go. That one costs every Chinese lab whatever capability it was borrowing from Claude, on a timetable longer than a single trading session. I would expect the narrow version, because so far the agency has sent officials to interview employees [2]. If guidance reaches labs beyond the two the officials visited, I have this wrong.

What to watch

  • Broadcom's next report of switch orders from Chinese state-owned customers, the first place informal guidance would show up.
  • Whether H3C Technologies and Ruijie Networks clear their component sourcing problems, since substitution needs a vendor that can ship.
  • Any CAC statement on whether routing user requests to a foreign model is itself a violation of the data security law.

Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.

Clarity's read

What the record supports and how the coverage leans. The claims behind it follow.

Reality

Evidence45
Adoption40
Hype gap+25
Incentives70
Confidence55

Perspective Coverage

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Operator
Operator 30%
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Claim ledger

Ranked by verification strength, evidence, and original report placement.

  1. [1]

    The Information reported that the Chinese government is concerned the two companies may have violated the country's data security law by routing user requests through Claude, the AI model developed by U.S.-based Anthropic, potentially exposing sensitive information from the Chinese military, police and businesses to the U.S. side.

    Reported Supported Source: The InformationView cited source
  2. [2]

    Bloomberg, citing U.S. technology outlet The Information, reported on the 23rd that the Cyberspace Administration of China had sent officials to DeepSeek and Moonshot AI to interview employees.

    Reported Supported Source: Bloomberg, citing The InformationView cited source
  3. [3]

    People familiar with the matter told The Information that the inquiry aims to determine whether security violations occurred at DeepSeek and Moonshot AI and how serious they were.

    Reported Supported Source: people familiar with the matter, via The InformationView cited source
  4. [4]

    The Chinese government has been expanding the use of domestic semiconductors and AI through policy measures to nurture homegrown AI companies and cut dependence on overseas suppliers.

    Reported SupportedView cited source
  5. [5]

    Shares of Chinese artificial intelligence model developers fell sharply after reports that Chinese authorities had begun investigating data security issues at DeepSeek and Moonshot AI.

    Reported SupportedView cited source
  6. [6]

    Zhipu AI and MiniMax fell 12% and 6.8% respectively on the Hong Kong exchange after the news.

    Reported SupportedView cited source
  7. [7]

    Alibaba Group dropped nearly 5% after the report; Xiaomi closed down about 3.8% and Tencent 2.9%.

    Reported SupportedView cited source
  8. [8]

    The reported price moves cover Zhipu AI, MiniMax, Alibaba, Xiaomi and Tencent; no share price is reported for DeepSeek or Moonshot AI.

    Derived Supported
  9. [9]

    "investors are afraid Beijing will step up its scrutiny of the AI industry"

    Reported Supported Source: Leonid Mironov, portfolio manager at Gavekal Capital, told BloombergView cited source
  10. [10]

    Mironov added that the specific scope of regulation remains difficult to gauge, which has weakened market sentiment and risks slowing the pace of AI model development in China.

    Reported Supported Source: Leonid Mironov, Gavekal Capital, via BloombergView cited source
  11. [11]

    The Financial Times reported on the 22nd, citing multiple sources, that the State-owned Assets Supervision and Administration Commission under China's State Council has spent recent weeks surveying the number of Broadcom switches installed in state-owned data centers.

    Reported Supported Source: Financial TimesView cited source
  12. [12]

    One source said the survey is part of China's domestic chip policy, and that depending on the findings SASAC could issue informal guidance directing state-owned data centers to reduce their use of Broadcom switches.

    Reported Supported Source: one source, via the Financial TimesView cited source
  13. [13]

    One estimate put the penetration rate of Broadcom switches at state-owned Chinese enterprises as high as 90%.

    Reported SupportedView cited source
  14. [14]

    An official at a data center rack manufacturer said potential restrictions on Broadcom switches would not apply to data centers run by private companies such as ByteDance and Alibaba, and that under a strategy of nationalizing the supply chain existing equipment would not be ripped out.

    Reported Supported Source: an official at a data center rack manufacturerView cited source
  15. [15]

    The FT said data center switches represent a market with the potential to generate billions of dollars in revenue as demand for AI training from Chinese companies grows.

    Reported Supported Source: Financial TimesView cited source
  16. [16]

    Nvidia once sold high-performance switches in China alongside Broadcom and Huawei, but its products are now effectively blocked from Chinese state-owned data centers, while Broadcom products remain widely in use.

    Reported SupportedView cited source
  17. [17]

    SASAC is also examining whether Broadcom used its market power to bundle other products or pressure customers into ordering tens of thousands of switches at once.

    Reported SupportedView cited source
  18. [18]

    Chinese networking equipment makers such as H3C Technologies and Ruijie Networks are seen as having faced constraints in sourcing components from domestic suppliers including Huawei.

    Reported SupportedView cited source
  19. [19]

    Zhipu's 12% decline is about 4.1 times Tencent's 2.9%, and MiniMax's 6.8% is about 2.3 times Tencent's.

    Derived Supported
  20. [20]

    Because Broadcom already holds up to 90% of state-owned enterprise switch installations, installed equipment would not be removed and private operators are excluded, the revenue exposed by any guidance is future orders from state-owned data centres.

    Derived Supported

Sources

3 independent publishers whose own reporting we read for this story.

  1. cryptopolitan.com

    1 article · September 22, 2026

    Chinese regulators investigate DeepSeek, Moonshot AI over routing sensitive data to Claude models
  2. decrypt.co

    1 article · September 23, 2026

    China Probes DeepSeek and Moonshot Over Alleged Data Leaks to Anthropic's Claude
  3. en.sedaily.com

    1 article · September 23, 2026

    China Probes DeepSeek, Moonshot AI; Chinese AI Stocks Tumble

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