Tencent shares jump 6% to three-week high after Hunyuan AI model launch

Tencent (HK:0700) shares surged to a three-week high on Thursday after the Chinese technology giant unveiled its latest Hunyuan artificial intelligence model, adding visual understanding and computer-use capabilities.

Shares rose 5.93% to HK$425.40, their highest level since October 16, outperforming the broader Hang Seng Index, which was up 3.3% at 11:12 a.m. Hong Kong time.

Tencent's Hunyuan team officially launched Hy4 on Wednesday, introducing visual understanding for the first time alongside improvements in instruction following, long-context comprehension and long-horizon agentic tasks.

The new model can process detailed images, analyse complex charts and perform mathematical visual reasoning. It also introduces computer-use capabilities, allowing it to interact with command-line and graphical interfaces to perform tasks across different applications.

Hy4 has been trained for professional software applications including Blender and computer-aided design (CAD), improving its ability to plan and execute complex tasks over extended periods.

The release marks another step in Tencent's efforts to strengthen its AI model development and integrate its technology more deeply into enterprise software and consumer-facing applications.

The Hy4 model has expanded its parameter scale to 770 billion, compared with fewer than 300 billion in the Hy3 series, according to Hong Kong media reports. Tencent said it plans to release the model weights and system cards in the coming days, extending its open-source AI strategy.

The model is also being integrated into Tencent's WorkBuddy and CodeBuddy productivity platforms, while its API is available through Tencent Cloud TokenHub. The company is keeping API pricing unchanged from the Hy4 preview version.

Tencent said it restricted Hy4's cybersecurity training to defensive applications, such as identifying and fixing software vulnerabilities, excluding material that could help users build hacking tools or break into systems.

The launch comes as Chinese technology companies accelerate development of generative AI models to compete with leading US developers. Tencent has been releasing major Hunyuan model updates approximately every two months since rebuilding its AI infrastructure in February, according to Caixin.