Fourth Paradigm (06682.HK) shares surged 10.75% in intraday trading, as part of a broader rally in artificial intelligence (AI) stocks in Hong Kong. The company's stock price increase was accompanied by significant gains in other AI-related companies, with Linklogis climbing 25.45%, Tuya rising 14.8%, and SenseTime increasing 11%.

The remarkable upswing in AI stocks can be attributed to the Chinese State Council's recent announcement of the "Opinions on Deep Implementation of the 'Artificial Intelligence+' Initiative." This new policy document has ignited investor enthusiasm for companies operating in the AI sector, as it signals strong government support for the industry's development.

The initiative outlines ambitious targets for AI integration across various sectors of the Chinese economy. By 2027, the plan aims to achieve extensive integration of AI in six key areas, with the application rate of new generation intelligent terminals and intelligent bodies expected to exceed 70%. The goals become even more ambitious for 2030, targeting a 90% application rate, and projecting the intelligent economy to become a major growth driver for China. Looking further ahead to 2035, the initiative envisions China fully transitioning into an intelligent economy and society, underscoring the long-term commitment to AI development and its potential to reshape the country's economic landscape.