Knowledge Atlas (02513.HK) surged more than 23% to an intraday record high of HKD 1,993 in afternoon trading before reversing to trade 3.5% lower at HKD 1,561, with turnover reaching HKD 3.52 billion. The extreme volatility comes ahead of the stock's inclusion in the Hang Seng Tech Index on June 8, which is also expected to make it eligible for southbound trading under Stock Connect.
Knowledge Atlas (02513.HK) surged more than 23% to a record HKD 1,993 before reversing to a 3.5% decline, with turnover hitting HKD 3.52 billion.
CICC highlighted the stock as one of four names likely to see positive capital flow impacts from the upcoming index review, according to a brokerage note. The others include BEONE MEDICINES (06160.HK), J&T EXPRESS-W (01519.HK) and MINIMAX-W (00100.HK).
Short selling accounted for 16% of turnover, with HKD 237 million in short sales during the midday session. The stock is scheduled for inclusion in the Hang Seng Tech Index on June 8 and is expected to become eligible for southbound Stock Connect trading, opening access to mainland Chinese investors.
The index inclusion could unlock significant capital inflows from mainland China, potentially driving structural demand from mainland investors. The sharp reversal from record highs suggests profit-taking as traders position ahead of the formal inclusion date, with the stock's elevated turnover pointing to heavy institutional repositioning.
This article is for informational purposes only and does not constitute investment advice.
