Hong Kong’s Hang Seng Tech Index welcomes MiniMax, Zhipu in AI milestone amid slump
Hang Seng Tech added MiniMax and Zhipu, the first pure-play AI firms in the index, even as a broader sell-off sent both stocks in different directions.
Intelligence analysis by GPT-5.4 Mini
MiniMax Group and Knowledge Atlas Technology, also known as Zhipu, joined Hong Kong’s Hang Seng Tech Index, a first for pure-play AI firms in the benchmark. Analysts said the move could trigger passive inflows, but the day’s market slump muted the immediate effect.
It is like two new kids joining a very popular school team. That can make more people pay attention and buy their jerseys, but if the whole school is having a bad day, their big moment can still get lost.
Analysis
Index milestone
Chinese AI companies MiniMax Group and Knowledge Atlas Technology, or Zhipu, were added to the Hang Seng Tech Index on Monday. The article says this is the first time pure-play AI firms have been included in Hong Kong’s benchmark technology gauge.
Market reaction
The inclusion did not translate into a clean rally. MiniMax fell 8.4 per cent to HK$506, while Zhipu rose 1.3 per cent to HK$1,314. The broader backdrop was weak: Asia’s technology stocks sold off after a stronger-than-expected US jobs report reduced expectations for interest-rate cuts.
Hong Kong’s benchmark indices also slipped, with the Hang Seng Index down 1.2 per cent and the Hang Seng Tech Index down 2.7 per cent. South Korea’s Kospi and Taiwan’s Taiex also dropped sharply, showing the move was happening inside a wider regional downturn.
Why analysts care
The article says index inclusion could increase liquidity because index-tracking funds will need to buy the newly added names. Morgan Stanley estimated in an April report that the two companies could eventually represent 5 to 7 per cent of the benchmark, implying US$1.25 billion to US$1.75 billion in passive inflows. Their initial weights are small: 0.53 per cent for Zhipu and 0.36 per cent for MiniMax.
Morgan Stanley also projected that if the two companies had been included at IPO time, the index’s year-to-date return would have been about 5 percentage points higher, replacing the benchmark’s two smallest constituents.
The article also notes that Zhipu has been added to the Stock Connect programme from Monday. Hong Hao of Lotus Asset Management said the inclusion would broaden liquidity because index funds would be forced to buy, and he added that Zhipu’s larger market value could support a higher weighting and relatively stronger performance.
Key points
- MiniMax Group and Zhipu were added to the Hang Seng Tech Index on Monday.
- The article says this is the first inclusion of pure-play AI firms in the benchmark.
- Analysts expect index-tracking funds to create passive inflows after the addition.
- Morgan Stanley estimated the two companies could eventually make up 5 to 7 per cent of the index.
- A broader tech sell-off pushed MiniMax down while Zhipu rose slightly.
If index funds keep buying as expected, the new names could gain more liquidity and attention from investors. The article also suggests Zhipu’s larger market value could help it earn a bigger weight and possibly stronger performance than peers.
The immediate market move shows the inclusion can be overshadowed by broader sell-offs, especially when investors pull back from tech stocks. The article also warns that looming lock-up expiries could dilute gains even if passive inflows arrive.
