Zhipu AI, Minimax Seen Joining HK Tech Gauge, Inflows to Top $2B
0h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
hang-seng-tech-indexzhipu-ai
Fazen Markets Editorial Desk
Collective editorial team · methodology
Trades XAUUSD 24/5 on autopilot. Verified Myfxbook performance. Free forever.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The majority of retail investor accounts lose money when trading CFDs. Vortex HFT is informational software — not investment advice. Past performance does not guarantee future results.
Bloomberg reported on 21 May 2026 that China’s leading private AI firms, Zhipu AI and Minimax, are candidates for inclusion in Hong Kong’s Hang Seng Tech Index. The quarterly rebalancing, expected in late May, opens the door for the stocks to join the southbound trading channel linking mainland and Hong Kong markets. Their inclusion could trigger passive flows exceeding $2 billion, reshaping the index’s composition and offering a new liquidity conduit for investors seeking direct exposure to China’s generative AI sector. This marks the first time major private Chinese AI developers are poised to enter a flagship Hong Kong benchmark.
The Hang Seng Tech Index conducts quarterly reviews in February, May, August, and November, with changes effective after market close on the third Friday of the review month. The index represents the 30 largest technology companies listed in Hong Kong that pass liquidity and sector criteria. Previous high-impact inclusions, such as electric vehicle maker Li Auto in May 2024, precipitated cumulative inflows of $1.8 billion over the following quarter.
The current macro backdrop features elevated global demand for AI infrastructure, with major cloud providers allocating over $120 billion to data center capex in 2026. Chinese tech equities have lagged their US counterparts, creating a valuation gap that index flows could narrow. The push for technological self-sufficiency within China has accelerated government and enterprise adoption of domestic large language models, fueling revenue growth for firms like Zhipu.
Eligibility for the index requires a minimum market capitalization threshold and trading liquidity. Zhipu AI, which went public in late 2025, and Minimax, which listed in early 2026, have seen their market caps surge past the $30 billion and $20 billion marks, respectively, clearing the benchmark’s size requirement. Their rapid ascent in both valuation and trading volume created the catalyst for this potential inclusion event.
Index provider Hang Seng Indexes Company has signaled a strategic intent to modernize the Tech Index’s composition to better reflect the generative AI investment theme. This rebalance directly addresses that goal by potentially adding pure-play AI software developers alongside the index’s existing heavyweights in e-commerce, semiconductors, and hardware.
Zhipu AI’s market capitalization reached $34.2 billion as of 20 May 2026, with an average daily trading volume of $280 million over the past three months. Minimax’s market cap stood at $22.5 billion, with average daily volume of $190 million. Their current combined weighting, if included, is projected to be between 5% and 7% of the Hang Seng Tech Index.
Projected passive inflows from index-tracking funds are estimated at $2.1 billion. This figure is based on the combined market cap of the two firms and the $31 billion in assets under management linked directly to the Hang Seng Tech Index. For comparison, the iShares China Large-Cap ETF (FXI) holds $5.3 billion in assets.
The potential for active manager replication could multiply these flows. The 12-month performance of the Hang Seng Tech Index is +15%, underperforming the Nasdaq 100’s +28% gain over the same period. Zhipu AI’s stock has gained 65% year-to-date, while Minimax is up 48%. The average price-to-sales ratio for the existing index constituents is 3.2x, versus 8.5x for Zhipu and 7.1x for Minimax.
| Metric | Zhipu AI (current) | Minimax (current) | Hang Seng Tech Index Avg. |
|---|---|---|---|
| Market Cap | $34.2B | $22.5B | $42.1B |
| YTD Return | +65% | +48% | +15% |
| P/S Ratio | 8.5x | 7.1x | 3.2x |
Direct beneficiaries include existing shareholders of Zhipu AI (9866.HK) and Minimax (1212.HK), who will see enhanced liquidity and a new baseline of demand from passive funds. Index heavyweight Tencent (0700.HK) and semiconductor firm SMIC (0981.HK) will see their index weightings diluted by approximately 80 to 120 basis points collectively, potentially tempering passive buying support for those stocks.
Second-order gains extend to Hong Kong Exchanges and Clearing (0388.HK), as increased turnover bolsters trading fee revenue. Custodian banks and prime brokers servicing northbound Stock Connect trades will also see elevated activity. Conversely, US-listed Chinese AI ADRs like Baidu (BIDU) and Alibaba (BABA) may face relative outflows as capital rotates to the new, direct Hong Kong listings.
A key risk is the elevated valuation multiples of the newcomers. Their high price-to-sales ratios suggest significant growth expectations are already priced in, making them vulnerable to earnings disappointments. Their inclusion also concentrates more sector-specific risk within the index, reducing its diversification benefit.
Positioning data indicates hedge funds have been net buyers of Zhipu and Minimax shares in the weeks preceding the rebalance announcement. Southbound Stock Connect flows turned positive for the tech sector in April, registering a net inflow of $850 million, suggesting mainland investors are front-running the potential index change.
The official announcement from Hang Seng Indexes Company is expected on 30 May 2026, after market close. The changes would take effect at the close of trading on 20 June 2026. Investors should monitor the daily southbound Stock Connect quota utilization in the days following the inclusion for signs of sustained buying pressure.
Key technical levels for the Hang Seng Tech Index include the 4,200 resistance level and the 50-day moving average at 3,950. A clean breakout above 4,200 on high volume would confirm the bullish momentum from the rebalance. For Zhipu AI, the $28.50 share price level represents a critical support zone established during its IPO lock-up expiration period.
Subsequent catalysts include the Q2 2026 earnings reports for both Zhipu and Minimax, scheduled for late July. These results will test the growth narrative underpinning their high valuations. The next index review in August will assess whether other AI infrastructure firms, such as Cambricon Technologies, meet the inclusion criteria.
Index inclusion makes a stock eligible for purchase through the southbound Stock Connect program, allowing mainland Chinese retail investors with brokerage accounts to buy shares directly. It also increases the stock’s visibility and analyst coverage. For global retail investors, it means any ETF or mutual fund that tracks the Hang Seng Tech Index will automatically allocate a portion of its assets to the newly included companies, creating a steady source of demand.
Vortex HFT is our free MT4/MT5 Expert Advisor. Verified Myfxbook performance. No subscription. No fees. Trades 24/5.
Trade 800+ global stocks & ETFs
Start TradingSponsored
Open a demo account in 30 seconds. No deposit required.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.