On September 23, Z.AI (02513.HK) fell 3.37% in regular trading, trading around 715.5 HKD/share, with turnover of approximately 1.419 billion HKD. The decline extends selling pressure from the prior session, when the stock also fell over 5% during midday trading.

The ongoing drag stems from a data security scandal surrounding the company's AI coding tool ZCode. Developers discovered that ZCode silently uploaded full local code repositories — including source code, Git histories, database credentials, and employee information — to cloud servers without user consent. Enterprise client Chengming Technology issued a formal legal letter demanding twelve items of accountability, questioning whether data was transmitted cross-border to a Singapore subsidiary, and reserving litigation rights.

Although Z.AI completed rectification measures — open-sourcing ZCode on GitHub, removing the Repo Wiki upload pathway, and inviting audits by CAICT and NSFOCUS confirming zero cloud data retention — market confidence remains unrestored. Notably, nearly 400 developers have joined rights-protection groups, and multiple enterprises have internally suspended ZCode usage, elevating the incident from a technical bug to a broader compliance crisis.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)