Chinese artificial intelligence firms MiniMax Group and Knowledge Atlas Technology were added to the Hang Seng Tech Index on Monday, marking the first inclusion of pure-play AI companies in Hong Kong’s benchmark technology gauge, in a move analysts said could drive substantial passive inflows.The shares moved in opposite directions, as a broader market sell-off weighed on regional benchmarks. MiniMax slid 8.4 per cent to HK$506, while Knowledge Atlas – also known as Zhipu – gained 1.3 per cent to HK$1,314 at the close of trading, as Asia’s technology stocks retreated after a stronger-than-expected US jobs report prompted investors to scale back expectations for interest-rate cuts.The downturn spread across regional markets, dragging key indices lower. Hong Kong’s Hang Seng Index fell 1.2 per cent and the Hang Seng Tech Index lost 2.7 per cent, while South Korea’s Kospi plunged 8.3 per cent and Taiwan’s Taiex dropped 3.5 per cent.Analysts said the inclusion could broaden liquidity as index-tracking funds adjust portfolios. Morgan Stanley estimated in an April report that the two companies could eventually account for 5 to 7 per cent of the benchmark, implying US$1.25 billion to US$1.75 billion of passive inflows. Their initial weightings are 0.53 per cent for Zhipu and 0.36 per cent for MiniMax.Zhipu has also been added to the Stock Connect programme with effect from Monday. Photo: ShutterstockMorgan Stanley further projected that had MiniMax and Zhipu been included in the Hang Seng Tech Index at the time of their initial public offerings (IPOs), replacing the benchmark’s two smallest constituents, the index’s year-to-date return would have been about 5 percentage points higher.“The inclusion will broaden liquidity as index funds will be forced to buy,” said Hong Hao, managing partner and chief investment officer at Lotus Asset Management. He added that Zhipu’s larger market capitalisation could result in a higher index weighting and relatively stronger performance than peers.