AI update sparks SenseTime jump

Shares of SenseTime (0020) soared up to 36 percent with the release of the latest version of its SenseNova generative AI model, highlighting the intense interest surrounding China's efforts to develop artificial intelligence.

Trading was halted in the afternoon session, and the reason became obvious when the firm officially launched SenseNova 5.0.

The ChatGPT-like platform has "significantly" improved in terms of linguistic and creative capabilities, chairman Xu Li said.

SenseTime is among a growing number of Chinese corporations and startups exploring ways to develop an answer to OpenAI's ChatGPT. In 2023, it joined Baidu (9888) and Alibaba (9988) in developing its own inhouse generative AI platform.

The potentially transformative technology has since become a key area in which Beijing is encouraging local companies to compete with their US counterparts.

SenseTime's launch came as chip equipment supplier ASMPT (0522) said first-quarter net profit soared 134.5 percent to HK$177.5 million but that demand for smartphones and tablets was expected to remain weak.

Despite the quarterly jump, the figure was 43.7 percent lower than a year ago.

Revenue dropped 7.8 and 19.9 percent quarterly and yearly, respectively, due to declines in two business segments.

Its Surface Mount Technology segment contributed HK$1.76 billion to revenue, but it was 2.6 percent lower than the last quarter.

The semiconductor segment showed a "steeper decline" due to the "prolonged semiconductor downcycle," with revenue falling 13.7 percent to HK$1.38 billion.

Shares of ASMPT jumped 7 percent to HK$102.30 yesterday.

That came as Huawei unveiled a new software brand for intelligent driving, marking its latest push to become a major player in the electric vehicle industry.