JPMorgan expanded its coverage of China's AI value chain for the first time and maintained a constructive view on the sector. The broker estimated cumulative operating profit of China's AI value chain to reach USD544 billion between 2026 and 2030, with models and applications contributing one-third of industry profits and nearly two-thirds of earnings growth during the period. Meanwhile, the profit share of hardware was expected to decline from 93% in 2026 to 30% in 2030.

JPMorgan's top picks were BABA-W (09988.HK) +0.300 (+0.273%) Short selling $433.78M; Ratio 21.855% , TENCENT (00700.HK) -6.800 (-1.542%) Short selling $457.61M; Ratio 13.703% and Z.AI (02513.HK) -27.500 (-4.231%) Short selling $221.48M; Ratio 9.217% , all being rated Overweight, with TP at HKD205, HKD690 and HKD2,000 respectively. Among them, BABA-W possesses integrated capabilities in chips, cloud and models; TENCENT owns scarce AI application assets that are not yet fully reflected in valuation; while Z.AI has differentiated intelligence capabilities that can drive paid usage.

The broker also initiated coverage on SENSETIME-W (00020.HK) +0.005 (+0.402%) Short selling $75.36M; Ratio 35.271% , PHANCY (06682.HK) -0.340 (-1.232%) Short selling $4.46M; Ratio 8.589% and XUNCE (03317.HK) +4.400 (+4.352%) Short selling $5.74M; Ratio 3.809% with Overweight ratings and TP at HKD2, HKD50 and HKD160 respectively. MEITU (01357.HK) -0.170 (-4.393%) Short selling $49.23M; Ratio 32.662% was newly covered with a Neutral rating and TP at HKD4.5. KINGDEE INT'L (00268.HK) -0.180 (-2.408%) Short selling $26.20M; Ratio 23.990% , JST GROUP (06687.HK) -0.130 (-1.028%) Short selling $32.74K; Ratio 6.789% and MANYCORE TECH (00068.HK) +0.105 (+1.347%) Short selling $2.09M; Ratio 10.630% were also rated Neutral. MINIMAX-W (00100.HK) +4.800 (+1.745%) Short selling $182.35M; Ratio 16.821% was rated Neutral with TP at HKD300.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-09-24 12:25.)