Shares of software-as-a-service (SaaS) companies are leading gains in the Hong Kong market on Tuesday, as investor concerns over AI-driven disruption continue to fade following calls from industry leaders to slow the pace of artificial intelligence development.

KINGDEE INT'L (00268) climbed 4.72% to HK$7.875, while CHINASOFT INT'L (00354) advanced 3.85% to HK$3.775. KINGSOFT (03888) rose 3.71% to HK$25.16, and MARKETINGFORCE (02556) gained 2.87% to HK$53.70.

On the news front, Anthropic CEO Dario has urged a global slowdown in the pace of AI technology iteration, arguing that risk mitigation capabilities need to catch up with the speed of technological advancement. OpenAI CEO Altman and SpaceX founder Elon Musk have both expressed support for this stance. Overnight, US software stocks rallied, with ServiceNow and Salesforce among the top gainers.

Analysts suggest that as pessimistic scenarios surrounding AI-led software disruption continue to ease, Salesforce and ServiceNow may increasingly attract longer-duration GARP/value-oriented investors.

In a research note, Citi reviewed the second-quarter and first-half results of 11 Chinese IT services and software companies under its coverage, finding that more than half delivered results that met or exceeded expectations. The sector shows notable divergence, with AI revenue gradually transitioning from concept-driven to actual financial contributions, as industry leaders begin to realize tangible gains from AI monetization. However, the bank emphasized that differentiation within the sector remains pronounced.