HK Stock Market Move | CHINA LIT (00772) bucks trend and rises nearly 8%, Seedance 2.0 is hot overseas, AI animation industry is expected to see accelerated development.

CHINA LIT (00772) rose by nearly 8% against the trend, reaching an increase of 6.11% at the time of writing, with a price of 40.68 Hong Kong dollars and a turnover of 2.21 billion Hong Kong dollars. On the news front, recently, Seedance 2.0, a product under ByteDance, has been popular overseas, with Elon Musk reposting content related to Seedance 2.0 on his social media platform X and stating that the model development is happening fast. According to China International Capital Corporation Limited, as of January 2026, CHINA LIT has had over ten works with over a billion views, and over eighty animated drama works with over tens of millions of views; the adaptation of the Zhihu Salt Story has surpassed 1 billion views. The bank believes that with the release of Seedance 2.0, the production costs of animated dramas are further reduced, and the production quality is further improved, leading to accelerated industry development. Caitong stated that with the amazing capabilities showcased by Seedance 2.0, after AI technology achieves equality, the animated drama industry will return to the essence of the content industry, with high-quality content becoming the core factor determining whether an animated drama will become a hit. Looking at overseas examples, the collaboration between OpenAI's Sora and Disney has provided initial exploration directions. In China, within the AI animated drama industry chain, similar explorations are being made, including by CHINA LIT, IReader Technology, and COL Group Co., Ltd., who have built AI animated drama platforms around their own IP resources. The bank believes that in the background of continuously upgrading video model capabilities, IP will become an important moat for AI animated drama platforms, and will also be an important factor influencing the overall quality of animated dramas.