This article first appeared on GuruFocus.
Analysts and investors turned their attention to China’s media and AI application names after ByteDance rolled out a new AI video-generation model that appeared to exceed market expectations. Following the Feb. 7 launch of Seedance 2.0, shares of publishing firm COL Group surged to their 20% daily upper limit, while Shanghai Film and gaming and entertainment company Perfect World each advanced about 10%. The broader CSI 300 Index rose 1.4%, reflecting what could be a renewed wave of interest in domestically developed AI tools after a strong rally in China’s equity market last year.Industry feedback has been notably constructive. Kaiyuan Securities analysts, including Fang Guangzhao, wrote that the new app has triggered widespread testing and discussion, potentially marking a singularity moment for AI in film and television. They pointed to test results that were described as impressive, highlighting support across text, image, video, and audio inputs, alongside progress in several core capabilities. In that context, the analysts suggested companies with established intellectual property and platform traffic could possibly be better positioned to benefit as adoption develops.
The move also fits into a broader pattern of rising investor demand for Chinese companies behind AI-driven killer apps. Interest has been building in recent months as similar products gain traction overseas, with Kuaishou Technology’s (KUASF) AI video-generation tool Kling cited as a recent example. The app ranked as the top-grossing graphics and design application on iPhones in South Korea and Russia as of Jan. 2, reinforcing the view that successful AI applications, rather than infrastructure alone, could increasingly shape sentiment toward China’s technology and media sectors.