Hong Kong stocks were mixed on the day, with the Hang Seng Index closing down 0.04% at 25,132.29 points. The Hang Seng Tech Index rose 1.32% to 4,814.83 points, while the Hang Seng China Enterprises Index fell 0.25% to 8,360.68 points. Total market turnover was HK$289.943 billion, a decrease from the previous session's HK$306.413 billion. Southbound funds recorded a net inflow of HK$7.167 billion.

Within the Hang Seng Index, 41 constituents rose and 49 fell. The top decliners were China Resources Mixc Lifestyle Services Ltd., down 3.24%, Tingyi (Cayman Islands) Holding Corp., down 3.15%, and China Resources Land Ltd., down 2.78%.

On the gainers' side, Lenovo Group Ltd. surged 8.50%, driven by the sustained high growth in global AI capital expenditure, with servers expected to provide significant earnings flexibility. Semiconductor Manufacturing International Corporation (SMIC) jumped 8.24% amid a broad rebound in chip stocks, fueled by reports that Taiwan Semiconductor Manufacturing Company (TSMC) plans to raise prices for mature process nodes, with the Capex increase further confirming strong AI sector demand. Zijin Mining Group Co., Ltd. advanced 4.65% as copper stocks rallied broadly; inventory drawdowns exceeded market expectations, and the supply-demand tightness narrative is gradually materializing.

In the Hang Seng Tech Index, 18 constituents rose and 12 fell. KNOWLEDGE ATLAS skyrocketed 36.89%, and Shanghai Huahong Grace Semiconductor Manufacturing Corporation soared 17.91%. MINIMAX-W gained 15.17%, leading the index's advancers.

The index's top laggards were XPeng Inc. -W, down 2.26%, Baidu, Inc. -SW, down 1.83%, and BYD Electronic (International) Company Limited, down 1.41%.

Key Drivers for KNOWLEDGE ATLAS's Surge

Shares of KNOWLEDGE ATLAS opened higher and continued to climb, at one point soaring 41.72% before closing the session at HK$1,219.00 per share, a gain of 36.89%. The sharp rally was primarily attributed to the company's announcement that it has successfully established a 1GW-scale domestic AI computing power data center and completed the acquisition of XCore Sigma.

KNOWLEDGE ATLAS announced the operational launch of its 1GW domestic AI computing power data center, which exclusively utilizes domestically produced AI chips. Concurrently, the company formally completed the acquisition of XCore Sigma, a domestic AI heterogeneous computing software firm. XCore Sigma originated from the Compilation Laboratory of the Institute of Computing Technology, Chinese Academy of Sciences, and has long focused on heterogeneous computing software stacks and compilation optimization, regarded as one of China's top-tier AI infrastructure teams.

Analysts suggest these two moves address two critical capabilities: computing power supply and computing power utilization efficiency. The data center provides the computational resources required for large-scale model training, while the acquisition enhances capabilities in compilers, runtime systems, inference engines, and other foundational software to improve heterogeneous chip utilization, reduce inference costs, and boost model deployment efficiency.

Market discussion regarding KNOWLEDGE ATLAS's next-generation foundational model has intensified. Some believe that, supported by large-scale computing power, a mature infrastructure system, and long-accumulated post-training capabilities, the company's next foundational model will continue to evolve towards larger parameter scales and higher intelligence levels while balancing inference efficiency and engineering deployability.

Industry insiders further note that competition among global frontier AI companies is gradually evolving from a singular focus on model capability to a systemic competition encompassing models, computing power, infrastructure, and ecosystem strength. KNOWLEDGE ATLAS's recent moves to bolster its underlying capabilities, alongside its ongoing advancements in models, agents, Model-as-a-Service (MaaS), and industrial ecosystem development, indicate it is building a comprehensive competitive framework for a foundational model company, rather than competing solely on individual model releases.

Sustained Rally for Xun Solutions

Shares of Xun Solutions Ltd. continued their strong advance, rising as much as 23.31% during the session before closing at HK$126.00 per share, up 16.99%. Its year-to-date gain has reached 149.50%.

On July 19, Xun Solutions announced it had entered a strategic cooperation with Xinchen Technology Innovation to promote the integration of data tokenization and AI capabilities. This news spurred a 18.22% surge in its share price on July 20.

According to the announcement, the memorandum of understanding aims to integrate resources from both parties to jointly explore deep empowerment services for tokenization based on the TokenOS platform, advancing the construction of next-generation fund management infrastructure that is both AI-native and token-native.

The collaboration will involve jointly promoting data aggregation and governance for scenarios such as investment research and post-investment management, co-building high-quality industry datasets, and exploring the development of vertical small models and intelligent agents. Additionally, Xun Solutions will provide tokenization services to portfolio companies of Xinchen Technology Innovation to aid their intelligent transformation. Based on the FDE model, the parties also plan to create replicable benchmark cases for token commercialization.

Two private equity funds under Xinchen Technology Innovation are shareholders of Xun Solutions, holding approximately 4.67% and 1.19% stakes, respectively. Its core subsidiary, Hongtai Fund, has extensive investments in fields such as artificial intelligence, chips, aerospace satellites, and advanced manufacturing, possessing substantial industry resources and influence.

Huatai Securities published a research note stating that Xun Solutions, as a domestic leader in scenario tokens comparable to Palantir, leverages the high technological and client barriers built within the asset management sector to continuously promote replication and deployment across various industries. Simultaneously, through its TokenOS, it has achieved a business model upgrade to token-based billing, driving revenue growth. The cooperation with leading private equity firm Hongtai Fund represents a significant milestone in the cross-industry expansion of its TokenOS, validating the replicability of its business model and further unlocking its long-term growth potential.