HK Stock Connect Daily Report: PHANCY Surged Nearly 15%; Hang Seng Index Quarterly Review Effective Today, Goldman Sachs Expects USD 870 Million of Passive Inflows into Tech Hardware - 20260904

I. Market Overview

On September 4, all three major Hong Kong indices advanced across the board. The Hang Seng Index rose 1.74% to 25,650.87 points, the Hang Seng TECH Index gained 2.27%, and the Hang Seng China Enterprises Index climbed 2.02%. Full-day turnover reached HKD 276.857 billion, expanding notably from the previous session.

On the trading floor, AI application plays led the gains: PHANCY (06682) jumped 14.66% and MARKETINGFORCE (02556) surged 13.52%, as OpenAI's release of GPT-6 Astra shifted market pricing logic from compute supply to application monetization. Mainland property developers extended their gains, with SUNAC (01918) up 14.29% and LONGFOR GROUP (00960) up 8.4%, following the "828" property policy package that systematically restructures the industry's regulatory framework. Hog-related plays strengthened, with MUYUAN (02714) up 9.21% as the national average hog price rebounded nearly 17% from its June trough. Innovative drug plays gained broadly, with AKESO (09926) up 11.45%. Semiconductor stocks plunged against the trend: HUA HONG GRACE (01347) fell 8.4%, and GENSCRIPT BIO (01548) dropped 13.33% on news of its proposed spin-off of Probio Technology Limited. SHEIN-W (00625) slid 9.19% to extend its new lows.

Southbound capital recorded net selling of HKD 10 billion during the day, with the Shanghai leg of southbound Stock Connect seeing net selling of HKD 4.708 billion and the Shenzhen leg net selling of HKD 5.313 billion.

II. HK Stock Connect Stock Rankings

2.1 HK Stock Connect Stock Gainers and Decliners

Source: Wind, HKEX. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

2.2 HK Stock Connect Active Stocks (ranked by southbound turnover)

Source: Wind, HKEX. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

III. HK Stock Connect-related A-share ETF Rankings

3.1 HK Stock Connect-related A-share ETF Gainers and Decliners

Source: Wind. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

3.2 HK Stock Connect-related A-share ETF Active Rankings (ranked by turnover)

Source: Wind. The content of this article is for the objective presentation of data only and does not constitute any investment advice, nor does it represent a recommendation for or value judgment on any security. The market involves risks; investment requires caution.

IV. Industry and Corporate Updates

1. Hang Seng Index quarterly review effective today; Goldman Sachs sees USD 870 million passive inflows into tech hardware and semiconductors

On September 4, the quarterly review of the Hang Seng Index family was formally implemented, with all changes effective after today's market close and new constituents to be included in index operations from September 7. The Hang Seng Index added HUA HONG GRACE (01347.HK) and WEICHAI POWER (02338.HK); the Hang Seng TECH Index added ILUVATAR COREX (09903.HK) and removed TONGCHENGTRAVEL (00780.HK); and constituents of the Hang Seng Composite Index increased from 534 to 580. Goldman Sachs estimates the review will generate over USD 7.2 billion in total two-way passive fund flows, with tech hardware and semiconductors expected to record the largest passive inflows of approximately USD 870 million.

2. GENSCRIPT BIO applies to spin off and separately list Probio Technology Limited on HKEX Main Board

On September 4, GENSCRIPT BIO (01548.HK) announced a proposal to spin off and separately list Probio Technology Limited (ProBio), an indirect non-wholly-owned subsidiary that operates the group's biologics and advanced therapy CDMO services, on the Main Board of the Stock Exchange of Hong Kong. The company has submitted an application to the Stock Exchange, and the Listing Committee confirmed on August 14, 2026 that the company may proceed with the proposed spin-off. Upon completion of the spin-off, GENSCRIPT BIO will continue to hold a controlling interest in ProBio, whose financial results will continue to be consolidated into the group's financial statements. GENSCRIPT BIO is a Stock Connect constituent.

3. STAR SHINE HLDG added to Hang Seng Composite Index and swung to profit in H1, with Stock Connect inclusion in prospect

On September 4, STAR SHINE HLDG (01440.HK), which was previously added to the Hang Seng Composite Index, will see the change implemented after today's market close and take effect on September 7. The company posted H1 revenue of RMB 163 million and profit attributable to owners of the company of RMB 24.249 million, versus a loss of RMB 22.511 million in the same period last year, swinging to profitability year on year. Following its inclusion in the Hang Seng Composite Index, STAR SHINE HLDG is expected to become a Stock Connect constituent in tandem.

4. LONGSYS fixes H-share offer price at HKD 236, listing expected September 8

On September 4, semiconductor memory maker LONGSYS (09976.HK) announced that the offer price for its global offering of H shares had been fixed at HKD 236.00 per share. The company plans to offer 26,077,800 H shares globally in board lots of 50 shares, with the H shares expected to commence trading on the Main Board of the Stock Exchange at 9:00 a.m. on September 8, 2026.

5. UDI's IPO subscription closes with margin financing oversubscribed 94.79 times; SENSETIME and 58 Group subsidiaries join as cornerstone investors

On September 4, the IPO subscription of Excelland Robotics (Wuxi) Co. Ltd. (03231.HK), a delivery and cleaning robot company, formally closed, recording HKD 4.214 billion in margin financing subscriptions and oversubscription of 94.79 times against the public fundraising amount of HKD 43.99 million. The company plans to offer 45 million H shares globally at an offer price range of HKD 14.45 to 19.55 per share, with listing expected on September 9. The IPO has brought in SensePower Management Limited, an indirect wholly-owned subsidiary of SENSETIME-W (00020.HK), and CYGG Holding Limited, a wholly-owned subsidiary of the 58 Group, as cornerstone investors.

V. Market Notes

Eligible securities list adjustment announcement

No recent announcements.

Trading calendar

No approaching market closure days.

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