Key Takeaways:
Two of Hong Kong’s hottest AI stocks, Zhipu (Knowledge Atlas) and MiniMax, are set to join the Hang Seng Tech Index on June 8, a move expected to draw up to $1.75 billion in passive investment and reshape the city's benchmark technology gauge.
"If Zhipu and MiniMax had been included since their listing, the Hang Seng Tech Index's year-to-date loss would have narrowed from 12.6% to 7.6%," Morgan Stanley analysts said in a recent report.
The inclusion will give the two AI firms a combined weighting of approximately 5% to 7% in the index. Based on the current $25 billion in assets tracking the Hang Seng Tech Index, this translates to a potential passive inflow of between $1.25 billion and $1.75 billion.
The move is a significant step in diversifying the Hang Seng Tech Index, which is currently dominated by e-commerce and electric vehicle stocks. However, the real test for Zhipu and MiniMax will come in July, when a significant number of shares will be unlocked from post-IPO lock-up periods, posing a risk to their current valuations.
Zhipu is also slated to be included in the Stock Connect program on June 8, allowing mainland Chinese investors to trade its shares. MiniMax is expected to follow on August 6. Morgan Stanley estimates that the two companies could see a combined HK$37 billion in southbound inflows in a base case scenario, and up to HK$88 billion in an optimistic scenario.
However, investors are also watching the upcoming lock-up expirations. On July 8, 5.83% of Zhipu's shares held by cornerstone investors will be unlocked. For MiniMax, nearly 50% of its shares will be unlocked on the same day. This sudden increase in the supply of tradable shares could put downward pressure on their stock prices.
The listing of Zhipu and MiniMax is part of a broader trend of technology companies going public in Hong Kong. So far in 2026, the information technology sector has accounted for 39% of all IPO fundraising in the city, up from 14% in 2025. This has been driven by a supportive regulatory environment, including a lower market-cap requirement for technology companies to list.
This article is for informational purposes only and does not constitute investment advice.
