Source: Caixin News
Author: Hu Jiarong
The TENCENT AI application "Yuanbao APP" has climbed to the top position in the Apple App Store, with weekly active users surpassing 5 million.
Citibank's Research Reports state that TENCENT is reshaping its AI strategy landscape through a "dual-engine drive", with Institutions strongly willing to reassess its AI strategy.
$TENCENT (00700.HK)$ The stock price once soared to 538 Hong Kong dollars, setting a new high since July 2021. As of the report, it has risen by 5.84%, reported at 535 Hong Kong dollars; the total market value is 4.91 trillion Hong Kong dollars, nearing 5 trillion Hong Kong dollars, an increase of nearly 300 billion Hong Kong dollars compared to the previous trading day.
Market analysis suggests that this wave of market activity stems from TENCENT's strategic breakthrough in the AI field—the explosive growth of its AI application "Yuanbao APP" and the accelerated layout of its large model ecosystem.
On the news front, application market data shows that since February 1, the Yuanbao APP, equipped with DeepSeek and hybrid models, has played a triumphant role. The app's ranking in the Apple App Store jumped from 12th place in productivity to the top position within just 22 days, surpassing strong competitors like Doubao from ByteDance and Kimi from Moonlight's Dark Side.
Moreover, reports indicate that TENCENT has invested over 0.3 billion yuan in promotional expenses, launching a "saturation" marketing campaign through the WeChat ecosystem, Bilibili, Xiaohongshu, and other channels.
It is worth noting that this AI race has not been smooth sailing. In early March, Yuanbao APP faced controversy due to intellectual property clauses in user agreements, after which the official clarification emphasized that "the ownership of user-generated content remains unchanged." As of March 5, the weekly active users of Yuanbao APP have exceeded 5 million.
Institutions say that TENCENT is reshaping its AI strategy through a "dual-engine drive."
Citibank's latest Research Reports point out that TENCENT is reshaping its AI strategy through a "dual-engine drive": on one hand, deepening technical collaboration with DeepSeek to address the computing power bottleneck in large model applications; on the other hand, core applications like Yuanbao are being integrated into the cloud and industrial business group, marking a shift in the AI strategy from technology R&D to commercialization. Analysts particularly emphasize the conversion potential of WeChat's ecosystem with 1.3 billion users, which may give rise to the world's first "super AI application platform."
Market observers point out that compared to the technology-following strategy adopted in 2023, the current rapid positioning through a "self-research + cooperation" model not only alleviates the problem of insufficient market voice for mixed Yuan models, but also builds competitive barriers by leveraging DeepSeek's technical advantages. This open ecological approach allows it to carve out a differentiated path among competitors like Baidu's Wenxin Yiyan and Alibaba's Tongyi Qianwen.
Currently, institutional investors have a strong willingness to reassess TENCENT's AI strategy. In the past two weeks, capital flowing south has been continuously increasing, with the shareholding ratio rising back to 27%, a year-to-date high. Morningstar analysts believe that the current valuation has not fully reflected the growth potential of the AI business; if the Yuanbao APP can maintain user growth, it may open new valuation space.
Editor/Jeffy
Today, after hitting the high near 24,000 in the early session and entering bearish positions, the index fell sharply by nearly over 600 points, immediately recouping yesterday's losses significantly.
Moreover, today it broke the new high again, reaching a maximum of 24,076, but by the end of the market, it fell back by about 70 points, producing a bearish candle. The current trend has not yet been broken, but from the previous low until now, it has risen close to 6,000 points. It is believed that those with positions can continue to hold until there is a clear trend reversal for profit-taking. Those without positions can wait for a pullback to get in. Actually, it is hoped for a quick pullback, as it allows for entry and also provides a healthy breath.
Currently, the outlook remains the same as before. It is believed that even if there is a pullback, it shouldn't be too deep. However, if Futures fail to stabilize and close below 22,350, there may still be room for decline. The chance of Futures falling below 21,400 in the short term should be low, so it is considered that if a significant pullback occurs, it presents a good opportunity to incrementally go long. Recently, there has been a consistent approach to not hold positions overnight, only focusing on immediate trades, as there is no high chasing and no casual short selling.
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