0823 GMT - Tencent's AI spending should continue to pick up toward the launch of its Weixin agent, HSBC analysts say in a research note. Tencent recently rolled out beta testing of the Weixin AI agent and unveiled the latest Hy3 model. "Given the size of Weixin's user base, it is imperative to find a sustainable way of operating the agent cost effectively," they say. HSBC cuts 2026-2028 net profit forecasts for Tencent by 6%-19%, though the analysts think various efforts to drive better token consumption efficiency can help offset potential inference costs. HSBC cuts its Tencent target price to HK$655 from HK$720.00 while maintaining a buy rating. Shares ended 0.6% lower at HK$457.60. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

July 13, 2026 04:23 ET (08:23 GMT)

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