Shares of Kuaishou-W (01024) surged more than 7% in morning trading. At the time of writing, the stock was up 7.02% to HK$43.30, with a turnover of HK$27.53 billion.

On July 2nd, Kuaishou announced the spin-off of its Kling AI-related assets and business into Beijing Kling, introducing external investors and financing. The post-investment valuation is approximately US$18 billion. On July 7th, Kuaishou stated in an announcement that Tencent expressed confidence in the long-term development prospects of the group and that both parties would continue to maintain a mutually beneficial relationship, including extending their strategic cooperation. The company expects the disposal will not have any material adverse impact on the group's operations.

Analysts at CICC noted that the independent valuation of the company's AI assets could unlock the group's valuation ceiling. It also alleviates capital expenditure pressure on the group and optimizes resource allocation. Introducing diversified strategic investors strengthens industrial synergies, helping Kling achieve stronger ecosystem collaboration in technology, computing power, and entertainment content. Furthermore, Beijing Kling has concurrently implemented an employee equity incentive plan, which is expected to further align the interests of the core team with the company's long-term goals.