Hang Seng Tech Index set for passive inflows on AI stock inclusion
Updated
Updated · CNBC · May 3
Hang Seng Tech Index set for passive inflows on AI stock inclusion
1 articles · Updated · CNBC · May 3
Morgan Stanley estimates $1.25 billion-$1.75 billion will enter the Hong Kong benchmark when Knowledge Atlas Technology and MiniMax join on 8 June.
The bank raised its targets for both newly listed AI firms, whose shares have surged since January, and said leading Chinese AI models could each generate at least $1 billion this year.
The forecast comes as the index is down more than 11% in 2026, with Tencent and Alibaba falling sharply, while analysts say AI listings are reshaping Hong Kong market liquidity and composition.
As Chinese AI models gain global traction, can Hong Kong truly rival Nasdaq as the world’s new AI capital, or is this another short-lived tech bubble?
Will chip shortages and rising costs undermine the explosive growth and high valuations of Chinese AI companies like Zhipu AI and MiniMax?
How might the surging energy demands of AI data centers reshape China’s ambitions for technological leadership amid environmental and supply constraints?
$1.75 Billion Capital Surge Narrows Hang Seng Tech Index Losses by 5% with AI IPO Stars Knowledge Atlas and MiniMax
Overview
The inclusion of Knowledge Atlas and MiniMax into the Hang Seng Tech Index on June 8, 2026, triggered significant passive fund inflows and boosted their share prices, helping narrow the index's year-to-date losses by about 5 percentage points and lifting investor sentiment. This milestone reflects Hong Kong's broader shift toward AI and deep-tech, driven by supportive policies like the Technology Enterprises Channel and strong national R&D investments. However, upcoming lock-up expirations, especially MiniMax's large July unlocking without immediate Southbound Stock Connect access, pose liquidity risks and potential volatility. Investors are advised to adopt cautious strategies while leveraging anticipated capital inflows, as the market evolves toward greater diversification and long-term resilience.