China Merchants Securities International released a report stating that leading mainland internet companies have delivered continuous surprises with their model iterations. These include a significant improvement in the film-grade video generation capabilities of ByteDance's "Seedance 2.0" and KUAISHOU-W's "Kling 3.0". Alibaba-W's "Qwen-Image-2.0" is positioned as a competitor to "Nano Banana", while its desktop Agent tool "Qoder Work" is seen as a rival to "Claude Cowork". The capabilities of "Pony Alpha" from the global model service platform OpenRouter are approaching those of Anthropic's "Claude Opus4.6", and "Kimi K2.5" has topped the OpenRouter rankings.

The report indicates that the investment thesis for the AI sector among leading mainland internet companies has significantly strengthened, aiding the valuation recovery of the Hong Kong technology sector. Upcoming major models, such as DeepSeek-V4, Alibaba's Qwen 3.5, Doubao 2.0, and Mini Max M2.2, are expected to serve as catalysts for the next phase. Top stock picks include Alibaba, TENCENT, and KUAISHOU-W.