Tencent Holdings shares jumped on Tuesday after the Chinese technology giant unveiled a preview version of its latest Hunyuan image-generation model.
The announcement added to a broader wave of artificial intelligence developments across China’s technology sector.
Hong Kong-listed Tencent shares rose 6.6% to HK$458.4 by 03:55 GMT. The stock had already gained 2.6% on Monday.
Tencent Unveils Hy-Image-3.5-Preview
Tencent introduced Hy-Image-3.5-Preview, a new AI model designed for image generation and editing.
The model supports text-to-image generation, image-to-image generation, and multi-turn editing.
According to Tencent Cloud documentation, Hy-Image-3.5-Preview can generate images at resolutions of up to 4K.
It also supports multimodal inputs, giving users more flexibility when creating or editing images.
Hunyuan AI Ecosystem Continues to Expand
The launch is part of Tencent’s broader effort to expand its Hunyuan family of artificial intelligence models.
Tencent has been integrating Hunyuan technology across a growing range of products and services.
These include the company’s Yuanbao AI assistant as well as other consumer and enterprise applications.
The latest release highlights Tencent’s attempt to strengthen its position in the fast-growing generative AI market.
Chinese Tech Companies Step Up AI Competition
Competition in China’s artificial intelligence industry continues to intensify.
Tencent’s latest announcement comes as other major technology companies increase investment in AI models, infrastructure and computing hardware.
Alibaba recently outlined an ambitious AI strategy at its Apsara Conference.
The company said it plans to train a new artificial intelligence model with between 5 trillion and 10 trillion parameters.
That could make the model two to four times larger than Alibaba’s current flagship Qwen 3.8 Max model.
Alibaba Expands Into AI Chips and Infrastructure
Alibaba also unveiled a new AI chip as part of its effort to build a wider artificial intelligence ecosystem.
The company is targeting a full-stack approach that includes chips, data centres, AI models and autonomous agents.
This strategy reflects a broader trend among major technology companies, which are increasingly seeking greater control over the entire AI infrastructure chain.
Chinese AI Stocks Rally
Chinese technology shares broadly moved higher on Tuesday.
AI-related stocks in Hong Kong were among the strongest performers as investors reacted to the latest announcements from Tencent and other major technology companies.
Tencent’s new AI image model, combined with continued investment across the sector, has added to expectations that competition in China’s generative AI market will remain intense.
