Technology stocks in Hong Kong have extended their recent rebound, driving the Hang Seng Tech Index to gain nearly 2%.

As of writing, KUAISHOU-W (01024) shares were up 4.28% at HK$43.9, while BABA-W (09988) shares gained 3.8% to HK$112.1.

BIDU-SW (09888) shares rose 3.89% to HK$112.2, and MEITUAN-W (03690) shares advanced 1.46% to HK$79.65.

This movement follows a series of significant AI developments recently announced by leading Hong Kong-listed internet companies.

TENCENT officially launched its new-generation large language model, Hunyuan Hy3, on July 6, marking a substantial leap in comprehensive intelligence and cost-effectiveness.

Concurrently, MEITUAN open-sourced its trillion-parameter model, LongCat-2.0, becoming the industry's first such model to complete the full training and inference process using domestically produced computing power.

Furthermore, KUAISHOU's AI unit, Keling AI, secured $3 billion in external financing, achieving a post-investment valuation of $18 billion and setting a new global record for funding in a video-focused large model company.

Analysis from ICBC International points out that the Hang Seng Tech Index's current valuation is at its lowest point in nearly a decade.

The second half of the year is seen as a critical window for investment, driven by a dual catalyst of accommodative liquidity conditions and the commercialization of AI.

Falling U.S. Treasury yields are easing valuation pressures on growth stocks, and this, combined with sustained inflows from southbound capital, is expected to support a synchronized recovery across two main sectors: internet platforms and semiconductor hardware.

The firm recommends prioritizing leading companies that are demonstrating tangible progress in AI implementation and have ongoing share buyback and dividend programs.