A mainland ETF on the new index would give onshore investors one packaged route into Hong Kong AI stocks such as Zhipu AI, MiniMax and Biren Technology.
Hong Kong Exchanges and Clearing (HKEX) has launched two thematic stock indexes, one tracking 40 Hong Kong-listed companies with high exposure to artificial intelligence and one tracking the 30 largest semiconductor-related companies listed in the city, the exchange operator said in a news release dated October 23. HKEX has signed a licensing agreement with China Southern Asset Management for exchange-traded funds in the Chinese mainland that track the AI index. Reuters and The Standard in Hong Kong also reported the launch.
According to a PR Newswire release on the deal, the AI index’s constituents include SMIC, Alibaba Group and Tencent Holdings, alongside newer listings such as Biren Technology, Zhipu AI, MiniMax and Horizon Robotics. No fund name, size, fee or launch date has been given for the planned ETF. The same release says it still needs regulatory approval, and Southern Asset Management will announce product details separately.
The timing puts a new benchmark in front of investors during a sharp drawdown in China AI stocks. On October 22, the day before the announcement, Hong Kong-listed MiniMax fell 6.9% and SMIC 6.1% as China’s CSI 300 entered a bear market amid a selloff in AI-related shares.
The AI index screens for revenue exposure and spending on research
HKEX describes the AI index as covering a five-layer stack: chip design, data centers, AI infrastructure, AI models, and software and physical applications. Its index page says constituents are chosen and weighted on a "fundamental-tilted" basis that favors companies with meaningful AI research and development and capital spending. The index is calculated in real time in Hong Kong dollars, disseminated every 15 seconds and rebalanced quarterly, with a base value of 10,000 on December 31, 2020. It carries the Bloomberg code HKEXAI.
The methodology document, version 1.0 dated October 2026, sets the rules in more detail. Candidates must be Main Board companies in eligible industries, such as semiconductors, software and IT services, that derive at least 30% of total revenue from four AI themes: chips, infrastructure, models and applications. They also need three months of trading history and average daily turnover of at least HK$20 million over six months. A fundamental screen uses thresholds of 3% for research spending relative to sales, 3% for capital spending relative to sales and 5% for two-year sales growth. Weights are free-float market capitalization multiplied by a fundamental score, capped at 10% per stock for chips, infrastructure and models and at 3% for applications.
The Semiconductor Index spans semiconductor manufacturing, equipment, electronic components, and computing hardware and storage. It shares the AI index’s base date, base value and quarterly review schedule, and carries the Bloomberg code HKEXSEMI.
HKEX is repeating the mainland licensing model it used for its Tech 100 index
The Southern Asset Management deal repeats a model HKEX used for its first Hong Kong equity benchmark. When it launched the HKEX Tech 100 Index in December 2025, the exchange licensed it to E Fund Management for a mainland ETF, also subject to regulatory approval, according to that index’s launch release. In that case, HKEX said all 100 constituents were eligible for Southbound Stock Connect, the program that lets mainland investors buy Hong Kong shares. Neither the AI index release nor its methodology mentions Stock Connect eligibility.
Richard Leung, HKEX Group Chief Information Officer, said in the release that the exchange looks forward to "partnering with other market participants" on more products built on its indexes. Yang Xiaosong, General Manager of Southern Asset Management, said the firm would turn opportunities across Hong Kong’s AI value chain into "an index-based tool that mainland investors can access conveniently." The PR Newswire release adds that Southern will work with CSOP Asset Management, its subsidiary, to promote products linked to the index.
Regulatory approval and the first quarterly review come next
The first concrete milestone is a mainland regulator’s approval of Southern Asset Management’s ETF, followed by the fund’s listing details. Neither HKEX nor Southern has given a timeline. The constituent list itself will change on schedule: the AI methodology reviews the index each March, June, September and December, with a buffer that removes existing members ranked below 48th and adds newcomers ranked 32nd or higher. The December review will show whether recent Hong Kong AI listings meet the turnover and 30% revenue tests and enter the index.