MINIMAX-W surges 18% on Southbound Stock Connect inclusion debut

MINIMAX-W (00100.HK) surged 18.52% to HKD 300.8 on its first day of Southbound Stock Connect eligibility, with turnover reaching HKD 4.743 billion as mainland investors gained access to the AI large-model developer.

Citi maintained its Buy rating on MINIMAX-W with a High Risk designation, citing significant cost advantages in its H3 model, according to related news.

The stock opened 5.5% higher against a falling market before extending gains in early trading. LUXSHARE ICT (02475.HK), also added to the southbound list, spiked 6.2% to HKD 62.2, while MLCC producer CCTC (06951.HK) nosedived 2.79% to HKD 107.9. The Hang Seng Index last stood at 25,454, down 461 points or 1.8%, with turnover of HKD 114.8 billion.

The inclusion opens MINIMAX-W to mainland capital through Stock Connect, a channel that has historically lifted newly eligible names. Southbound investors were net sellers of HK$1.398 billion in Hong Kong-listed stocks on Wednesday, though they bought HK$1.152 billion of SMIC (00981.HK) while selling HK$844 million of Tencent (00700.HK).

The Shanghai Stock Exchange added MINIMAX-W, LUXSHARE ICT, and Sanhuan Group (06951.HK) to the southbound eligible list, effective from the next southbound trading day, according to the exchange's implementation measures.

MINIMAX-W, which develops large-language models, competes with global players including OpenAI and Anthropic as mainland investors seek domestic AI exposure. Its inclusion gives mainland mutual funds and retail investors a direct channel to the stock, a route previously limited to Hong Kong-based buyers. The surge shows the liquidity premium attached to Stock Connect eligibility, with turnover of HKD 4.743 billion on the day exceeding the broader market's pace.

Inclusion premium vs. broader weakness

The divergence between the newly eligible names and the broader index shows how Stock Connect access can redirect capital. LUXSHARE ICT, an Apple supply-chain component maker, gained 6.2% to HKD 62.2, while CCTC, a multilayer ceramic capacitor producer, fell 2.79% to HKD 107.9, showing the inclusion effect is not uniform.

Southbound flows remained net negative overall, with mainland investors selling HK$1.398 billion of Hong Kong-listed stocks. Buying was concentrated in semiconductor names — SMIC drew HK$1.152 billion of net purchases and Huahong Hongli (01347.HK) HK$990 million — while Tencent saw HK$844 million of net sales.

The inclusion takes effect as Hong Kong's AI and semiconductor listings compete for mainland capital. The Hang Seng Index's 1.8% drop to 25,454 tracked a mixed U.S. session, where the Dow Jones rose 0.49% to a record while the Nasdaq fell 0.83%. Hong Kong-listed AI and technology names have been among the strongest profit-growth areas in the first half, with more than half of 332 companies issuing interim guidance reporting higher earnings or a return to profitability, according to exchange data. The premium paid for newly eligible names may narrow as the initial buying wave settles, though sustained inflows depend on earnings delivery from the AI names now open to mainland investors.

This article is for informational purposes only and does not constitute investment advice.