Hang Seng Index adds major Chinese chipmaker as tech pivot continues

AI developers MiniMax and Z.ai are top candidates for Hang Seng Index inclusion as compiler aims to boost tech exposure

More artificial intelligence companies may join the Hang Seng Index to increase the benchmark’s weighting towards technology, as the index compiler is due to reveal the result of its latest quarterly review on Friday.

AI model developers MiniMax Group and Z.ai, known as Zhipu in China, are the most likely candidates to be included in the 93-member Hang Seng Index in the rebalancing, according to investment banks, including China International Capital Corporation. A unit controlled by bullion producer Zijin Mining Group, Zijin Gold International, was also a front runner for inclusion, they say.

The information technology sector ranked third by weighting on the Hang Seng Index, with a 15.6 per cent representation as of July, falling behind financials at 34 per cent and consumer discretionary at 22 per cent, according to Hang Seng Indexes Company.

The index compiler also proposed this month to revamp its methodology for selecting members on the Hang Seng Tech Index. Companies with the fastest revenue growth would be eligible for inclusion, and the number of constituents would increase from 30 to 50, according to a consultation paper.

The tech gauge has declined 14 per cent this year, though the Hang Seng Index has remained stable.