The inclusion of Chinese artificial intelligence (AI) firms MiniMax Group and Knowledge Atlas Technology - better known as Zhipu AI - into the Hang Seng Tech Index formally took effect on Monday. Analysts said that the inclusion of the two leading AI firms reflects the evolution of the important tech gauge from traditional internet platforms, consumer electronics and software to the AI field, which will also provide a convenient channel for international investors to gain exposure to Chinese AI firms.

On May 22, the Hang Seng Indexes Co announced that the two leading Chinese mainland AI firms would be officially added to the Hang Seng Tech Index. The changes officially took effect on Monday, according to a document on the company's website.

"Previously, the Hang Seng Tech Index tracked Hong Kong-listed companies in fields including the internet, consumer electronics and e-commerce. The inclusion of AI firms shows the evolution of the index, which aims to reflect the trend of the AI boom. As an index that catches the attention of international investors, it will also offer a convenient channel for international investors to gain exposure to Chinese AI firms," Li Changan, an economist at the University of International Business and Economics, told the Global Times on Monday.

The move of the Hang Seng Tech Index coincides with the inclusion of 19 A-share stocks into the MSCI China Index by leading global index provider MSCI. The newly included companies are primarily concentrated in sectors including optical communications, computing power, and high-end manufacturing, reflecting foreign investors' growing appetite for China's hard tech names, CCTV reported on June 3.

"The global appetite for Chinese assets has picked up noticeably in 2026. Major banks including JPMorgan, UBS and Morgan Stanley have held China forums in the country, expressing keen interest in tech innovation, high-end industries and Chinese firms' overseas expansion.

"Backed by China's breakthroughs in chips, AI-powered large-language models and humanoid robots in recent years, foreign capital's confidence in China's sci-tech innovation has been greatly enhanced," Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Monday.

On Friday, the China Securities Regulatory Commission released its latest list of Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII), showing that seven institutions were granted QFII/RQFII status in May, sending a signal of foreign capital's increased exposure to Chinese assets, the Securities Daily reported.

As of the end of May, offshore investors held more than 4 trillion yuan ($591.22 billion) worth of A-share free-float market capitalization. In the first quarter, total QFII holdings reached 13.86 billion shares, up 27.02 percent quarter-on-quarter, according to the report.

Global investors' interest in Chinese assets will continue to support the strong performance of these assets including Hong Kong and Chinese mainland shares in the second half of this year, Chen Ge, co-head of the global investment banking department at UBS Securities, said during a group interview in Beijing on Thursday.

According to UBS research, active global funds' allocation to China equities has rebounded noticeably since the fourth quarter of 2024, rising from a trough of about 5 percent of portfolios to approximately 7 percent most recently - still well below the peak of 15 percent seen in 2021, Chen noted.

"Despite the near-term pullback in the global AI tech sector triggered by sharp declines in US equities, we remain constructive on the long-term investment opportunities presented by AI technology," Yang said, noting that the joint effect of factors including China's stable macro-economy, the development of new quality productive forces, and the yuan's continuous internationalization will continue to support China assets.