1002 GMT - AI and the yuan's internationalization could be themes driving the Hang Seng Index's medium-term recovery, Pepperstone strategist Dilin Wu says in a research note. China has adopted a "low-power, high-efficiency" approach to AI development, as startups such as DeepSeek and tech giants including Alibaba and Tencent accelerate AI asset integration and commercialization, she says. "This evolving AI ecosystem fundamentally supports the investment logic for Hong Kong stocks," Wu says. Meanwhile, Beijing is envisioning a bigger role for the yuan on the global stage, including the launch of an operation center for the digital yuan. Hong Kong is a front line for the internationalization of the yuan, and stands to benefit first from digital currency pilots, she adds. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

June 27, 2025 06:02 ET (10:02 GMT)

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