(March 25): Chinese artificial intelligence (AI) service stocks rallied after state media highlighted a sharp increase in domestic AI model adoption and a surge in token usage they generate.
Shares of Knowledge Atlas Technology JSC Ltd, known as Zhipu, rose as much as 8% in Hong Kong on Wednesday, while peer MiniMax Group Inc’s stock pared earlier gains. Data-centre operators also advanced, with Beijing Sinnet Technology Co and GDS Holdings Ltd gaining, as expectations build for continued capacity demand.
Token consumption, which measures data units processed by AI models for generating text and other outputs, is emerging as a key metric for monetising AI offerings, China Central Television reported on Tuesday, citing Liu Liehong, the head of the National Data Administration. Rising usage and an escalating competitive landscape may influence sector valuations in the months ahead.
Companies like MiniMax and Zhipu “are the clearest beneficiaries of rising token usage, which looks set to continue”, said Vey-Sern Ling, the managing director of Union Bancaire Privee. “The issue with those companies is a lack of visibility on profitability, especially given increasing competition.”
China’s token consumption jumped 57% in the week of March 16-22 from the prior period, far outpacing 7.4% growth in the US, state-backed Science and Technology Daily reported on Tuesday. Separately, daily token usage has expanded more than 1,000-fold since the start of 2024, according to China Daily.
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Chinese large language models, including DeepSeek-V3.2 and MiniMax M2.5, are seeing a sharp rise in token usage as falling costs spur broader adoption and AI agents such as Openclaw gain traction across applications. Increased government promotion of token consumption has also provided an additional tailwind for AI-related sectors.
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