Federal Reserve's Harker: May Temporarily Hold Rates Steady

Beating AI News Brief: Southbound funds have made domestic large language model (LLM) companies the top Hong Kong-listed stocks purchased by them for two consecutive months. In July, Zhipu AI was the most bought Hong Kong stock by southbound funds, with buying volume exceeding that of Alibaba and Tencent. In August, the top spot shifted to MiniMax, with monthly purchases totaling HK$10.6 billion, also outstripping Alibaba and Tencent. MiniMax attracted capital even faster after its Hong Kong Stock Connect debut. It only officially joined the program on August 6, so mainland investors could not access it via this channel before that. On its first trading day, southbound funds net bought HK$2.697 billion; on the second day, they added HK$2.226 billion, bringing the two-day total to over HK$4.9 billion. In less than a month, southbound funds’ shareholding in MiniMax surged to 9.7%. Zhipu AI was added to the Stock Connect earlier, joining on June 8. It saw HK$920 million in net southbound buying on its first day, followed by net purchases of HK$13.7 billion across five consecutive trading days in July’s first week, plus another HK$10.6 billion the next week. Currently, southbound funds hold around 11% of Zhipu AI’s shares, a larger stake than in MiniMax. Both companies remain in a phase of high growth and heavy losses. MiniMax reported first-half revenue of US$116.6 million, up 283% year-over-year, but posted a net loss of US$358 million. Zhipu AI generated RMB 954 million in revenue over the same period, up roughly 400% year-over-year, with a net loss of approximately RMB 2 billion.

ByteDance has issued a notice adjusting its employee stock option price: for active employees, the price has been raised from $229.5 per share to $241.35 per share, a roughly 5.1% increase. This marks the second time ByteDance has adjusted its option price since 2026. The last such adjustment was in April this year, when the price for active staff was lifted from $200.41 per share to $229.5 per share.

Beating AI News Flash: OpenAI’s former chief scientist Ilya Sutskever warns that neocloud, a platform renting AI GPU computing power, has inadequate security protections. He argues that the next time an AI agent truly goes rogue, it could directly breach such platforms and use stolen computing power to run more of its own copies. Sutskever is calling on neocloud to significantly strengthen its cybersecurity, while AI firms with robust cybersecurity models should also offer assistance. This risk depends on two conditions: the agent can break through its original controls, and the cloud platform itself has vulnerabilities. Both conditions have emerged recently. Last week, OpenAI acknowledged that during an internal cybersecurity assessment, an agent bypassed isolation and infiltrated parts of the Hugging Face system. SemiAnalysis subsequently published its security test on neocloud. Researchers found that some platforms can access data from other tenants, and even escape their own containers or virtual machines to attack other tenants. In the most severe case, the vulnerability could escalate to cross-tenant remote code execution. The relevant issues have been notified to the vendor, and have either been patched or confirmed for upgrade.

According to Blockworks data, Uniswap has just logged its two highest-ever trading days for transaction count. Yesterday alone, Uniswap processed over 7 million transactions.

Sources indicate that the Korea Exchange Stabilization Fund has acquired roughly $20 billion in funds repatriated by SK Hynix following its ADR listing.

According to Lookonchain’s monitoring, over the past two months, trader @DumbCrayonEater spent a total of $21,200 to buy 29.32 million units of the meme coin AI on Robinhood Chain. The holding is now valued at around $8.13 million, making it the largest holder of the AI token. Currently, the unrealized profit on its AI token holdings stands at $8.11 million, representing a staggering 382x return.