HKEX Launches First AI Index as China Southern Prepares Mainland ETF

Hong Kong Exchanges and Clearing Limited (HKEX) announced on October 29, 2026, the launch of the HKEX Artificial Intelligence Index, its first index built around the artificial intelligence theme. The new benchmark, called HKEX AI, is designed to give investors a single, index-based way to gain exposure to companies across the AI value chain, from the chips that power AI systems to the applications that put those systems in front of users.

The launch broadens HKEX’s index business at a moment when Hong Kong has become a preferred public fundraising market for innovative technology companies in artificial intelligence, biotechnology and semiconductors. HKEX said the index offers investors a clearly defined and comprehensive tool for allocating to the AI value chain, and described the launch as another step in deepening its index business and serving investors’ diversified allocation needs.

What the Index Covers

HKEX AI captures the AI value chain through four segments. The chip segment supplies the computing hardware that underpins AI, while the infrastructure segment directly captures AI capital expenditure. Domestic open-source large language models are becoming a preferred option for enterprise deployment, according to the announcement, and the commercial pathways for applications are becoming increasingly clear. Together, the four segments are meant to cover the chain from hardware to software to end use.

The 40 constituents include SMIC, Alibaba Group and Tencent Holdings, alongside next-generation AI companies such as Biren Technology, Zhipu AI, MiniMax and Horizon Robotics, many of which are Hong Kong-listed. The mix reflects how Hong Kong’s market now brings together established technology giants and newer AI-focused names in a single listing venue, giving index investors exposure to both scale and newer growth stories.

The index places the Hong Kong-listed AI value chain within a single, investable framework, from chips and computing infrastructure to large language models and application deployment.

How Constituents Are Chosen

Eligibility for the index is tied to measurable investment and growth thresholds. Eligible constituents must meet thresholds for research and development expenditure and capital expenditure, each representing no less than 3% of sales, and sales growth of no less than 5% over the past two years. Those rules are designed to keep the index focused on companies that are actively investing in AI-related capacity and growing, rather than companies with only a loose connection to the theme.

Weighting is also capped to limit concentration. No individual constituent may exceed a 10% weight in the index, while each stock in the applications segment is capped at 3%. The index is reviewed and rebalanced quarterly, so its membership and weights can change as companies grow, list, or fall out of the eligibility thresholds. That regular review matters for a fast-moving sector, where a company that leads one year can be overtaken the next.

A Mainland ETF Is Planned

Alongside the index launch, HKEX has signed an agreement with China Southern Asset Management Co., Ltd., authorising it to launch an exchange-traded fund tracking the index in the Chinese mainland market. The ETF would give mainland investors a convenient, index-based route into Hong Kong’s AI value chain, turning the opportunities across that chain into a product they can access directly.

China Southern Asset Management was among the first fund managers to obtain Qualified Domestic Institutional Investor status in 2007, and its subsidiary CSOP Asset Management Limited was the first overseas branch established by a mainland fund management company. The company said the collaboration extends its international strategy and builds an investment bridge between the mainland and Hong Kong capital markets. The launch of the related ETF remains subject to regulatory approval, and its specific arrangements will be announced separately.

• HKEX AI is Hong Kong Exchange’s first AI-themed index.
• It holds 40 constituents across chips, infrastructure, models and applications.
• Eligible companies must spend at least 3% of sales on R&D and capital expenditure, and grow sales by at least 5% over two years.
• No single stock may exceed a 10% weight; applications stocks are capped at 3%.
• The index is reviewed and rebalanced every quarter.
• A mainland ETF tracking the index is planned, subject to regulatory approval.

Why Hong Kong Is Positioning Itself as an AI Gateway

HKEX described Hong Kong as the world’s largest offshore market for China-related capital, combining access to Chinese assets with international price discovery, which makes it a preferred gateway for international capital seeking exposure to Chinese assets. The exchange has also been developing new index products, including the HKEX TECH 100 Index, to help investors capture emerging opportunities and diversify their portfolios.

The timing also fits a broader market story. AI chip demand has been a major driver of technology earnings in the region, with Samsung reporting a record third-quarter profit on the AI chip boom on the same day, while chip shares have also shown how quickly sentiment can swing, as Taiwan stocks slid on falling chip shares. Competition scrutiny is rising too, with US regulators examining Nvidia’s acquisition of AI platform Hugging Face. An index product sits in the middle of that story: it does not pick a single winner, but tracks the whole value chain as it rises, corrects and consolidates.

HKEX Group Chief Information Officer Richard Leung said the exchange was delighted to be launching the index, giving investors more ways to capture new trends and participate in the growth of the region’s technology ecosystem, and that it looked forward to partnering with other market participants to develop more investment products based on its index suite. Yang Xiaosong, General Manager of Southern Asset Management, said the authorisation was an important example of the company putting its international strategy into practice and serving investors’ needs for diversified asset allocation.

What to Watch Next

What to watch next is whether the mainland ETF receives regulatory approval and when its specific arrangements are announced, whether the index’s quarterly reviews bring in new AI listings or drop companies that fall below the investment and growth thresholds, and whether investor demand for a single AI value-chain product holds up if chip and application stocks continue to swing. The index itself does not promise returns: as the announcement’s risk disclosure notes, historical index performance is not indicative of future results, and investments in AI-themed products may be highly volatile. What it does offer is a transparent, rules-based window onto one of the fastest-moving parts of Hong Kong’s market.