Hong Kong's AI-Driven Equities: A Strategic Entry Point Amid Domestic Innovation Momentum

Hong Kong's AI sector is surging as a strategic hub for innovation, driven by a confluence of government-led infrastructure investments, corporate R&D intensity, and a thriving startup ecosystem. With a HK$10 billion industry-oriented fund and the Cyberport AI Supercomputing Centre nearing 3,000 petaFLOPS of computing power by 2025, the city is positioning itself as a global leader in AI research and industrial applications, aided by a HK$1 billion R&D institute. For growth investors, this environment creates a fertile ground for identifying equities with strong fundamental catalysts, particularly in companies leveraging AI to transform industries ranging from healthcare to robotics.

Key AI Equities: Revenue Growth and R&D Momentum

SenseTime Group Inc. (0020.HK) stands out as a prime example of a company capitalizing on Hong Kong's AI infrastructure. In 2024, its generative AI revenue surged 103% year-on-year to 2.4 billion yuan, accounting for 63.7% of total revenue, according to AsiaICT's SenseTime Awaits Turnaround. This growth reflects a strategic pivot from project-based services to scalable product offerings, particularly in computer vision and multimodal AI. Despite a net loss of 4.307 billion yuan in 2024, the company reduced losses by 33.7% compared to the prior year, while maintaining R&D expenditures