HKEX Launches AI Index, Southern Asset Management Authorised to Launch ETF

The HKEX AI index is designed to provide investors with a structured approach to the artificial intelligence value chain. It segments the AI industry into four distinct areas: AI chips, AI infrastructure, AI models, and AI applications. This framework aims to cover the spectrum from foundational computing hardware and capital expenditure to the development of large language models and their commercial deployment, offering a broad view of the AI sector.

The index comprises 40 constituents, including established technology giants like Alibaba Group and Tencent Holdings, alongside next-generation AI companies such as Biren Technology, Zhipu AI, MiniMax, and Horizon Robotics. Eligibility for inclusion emphasizes active investment and growth within the AI domain, requiring companies to meet thresholds for R&D and capital expenditure, each representing no less than 3% of sales, and sales growth of no less than 5% over the past two years.

To manage portfolio concentration, the index implements weighting caps, limiting individual constituents to a maximum of 10% and capping each stock in the applications segment at 3%. This structure suggests an effort to diversify exposure across the AI value chain. The index undergoes quarterly review and rebalancing, indicating a dynamic approach to maintaining its relevance with the evolving AI market.