Kuaishou-W (01024) experienced a significant intraday surge of 5.04% on Wednesday, marking a strong recovery in its trading session.

The stock's rise follows a recent major stake reduction by Tencent Holdings, with the rebound supported by multiple institutions maintaining positive ratings. Analysts from firms like Citi and Everbright Securities have reiterated Buy ratings, citing Kuaishou's unchanged fundamentals and the growth potential of its Kling AI unit. Furthermore, Kuaishou's own repurchase of 4.853 million shares for approximately HK$199 million sent a supportive signal to the market, indicating management confidence.

Additional positive catalysts include the successful completion of a nearly $3 billion external funding round for Kuaishou's Kling AI business, valuing the unit at $18 billion. This move is viewed by analysts as a strategic capital reallocation by Tencent towards AI assets rather than a loss of confidence in Kuaishou. The broader market context also contributed, with a noted rotation of capital from high-flying AI hardware sectors into lower-priced technology and internet stocks, benefiting companies like Kuaishou.