From https://www.cathaypacific.com/cx/en_...AV_FLIGHTS_4_1

Cathay will check through bags to (interline) partners on separate tickets. So they'd be checked through to either their own flight or the Thai flight, but not to the AirAsia flight (LCCs don't do interlining).

1h20 is well above Minimum Connecting Time at HKG and 2h20 would be plenty to go landside, collect and recheck your bags, so, in principle, any of those options would be fine (assuming your passport allows you entry to HK). Obviously the longer the transit the more allowance for delays, but I'd probably take the Cathay option if not significantly more expensive than the Thai, or the Thai if significantly cheaper just to avoid the baggage hassle.