HK Stock Market Move | Science and technology stocks continue to rebound in the near term. Internet giants in Hong Kong are intensively deploying AI strategies. The Hengqiao Index valuation is at its lowest level in nearly a decade.

The internet stocks continued their recent rebound, driving the Hang Seng Technology Index up by nearly 2%. As of the time of writing, Kuaishou-W (01024) rose by 4.28% to HK$43.9, Alibaba-W (09988) rose by 3.8% to HK$112.1, Baidu-SW (09888) rose by 3.89% to HK$112.2, and Meituan-W (03690) rose by 1.46% to HK$79.65. On the news front, recently, internet giants in the Hong Kong stock market have been intensively implementing AI strategies: Tencent officially released the new generation large model Hybrid Element Hy3 on July 6, significantly enhancing its comprehensive intelligence level and cost-effectiveness; Meituan concurrently open-sourced the trillion-parameter large model LongCat-2.0, becoming the first in the industry to complete the training and reasoning process of a trillion-parameter model based on domestic computing power; Kuaishou's affiliate Ke Ling AI completed a $3 billion external financing, with a post-investment valuation of $18 billion, setting a record for financing of global video large model companies. Industrial and Commercial Bank International pointed out that the current valuation of the Hang Seng Technology Index is at a nearly ten-year low, and the second half of the year will bring about a double catalysis of loose liquidity and AI commercialization, which is a critical window for layout. The decline in US Treasury yields will alleviate the valuation pressure on growth stocks, coupled with the continuous inflow of southbound funds, internet platforms, and semiconductor hardware are expected to resonate for repair, with priority given to leading stocks that realize AI implementation and continue to engage in share buybacks and dividends.