Hong Kong large-model AI concept stocks extended losses in afternoon trade; MINIMAX-W (00100.HK) fell 10.94%, Zhipu (02513.HK) dropped over 10%.

The U.S. Securities and Exchange Commission is investigating AI hedge fund Situational Awareness after a near-collapse and has issued subpoenas to major Wall Street banks that provided leverage to the fund. The SEC requested trade timestamps, communications between the banks and lenders about borrowed funds, and ordered preservation of all materials related to the fund. Situational Awareness, founded by former OpenAI researcher Leopold Aschenbrunner, peaked at over $30bn AUM and had borrowed tens of billions of dollars to lever positions. Late last month, declines in popular AI stocks and rallies in legacy tech names it had shorted produced rapid losses that forced a "sell-off liquidation"; the fund sold most of its equity portfolio to Citadel at a discount. The SEC said the probe is in its early stages and does not imply enforcement; the fund is not accused of wrongdoing and says it will "fully cooperate with any regulatory request."

CHINA'S SHANGHAI COMPOSITE INDEX extended losses to 1% in afternoon trade; Shenzhen Composite Index was down 3% and the ChiNext Index down 4.27%.