HK Stock Connect Insight | BAIGE DIGITAL (02672.HK) Rises Over 200% Since Stock Connect Inclusion; Intraday High of HKD 119.600 Sets Listing Record

On October 29, 2026, the insurtech and AI risk control theme traded actively, and BAIGE DIGITAL (02672.HK) rose. As of 13:27, the stock was quoted at HKD 117.000, up 8.53%, with a turnover of about HKD 62.2557 million and a market capitalisation of about HKD 37.513 billion based on the latest price. It touched a low of HKD 107.900 and a high of HKD 119.600 during the day, with an amplitude of 10.85%, the intraday high marking a record since listing.

According to the data, BAIGE DIGITAL's share price rose continuously over the past week (October 22 to October 29). It touched an intraday low of HKD 31.480 on September 9 and then trended higher, rising 27.81% to close at HKD 97.900 on October 26 and touching an intraday high of HKD 119.600 on October 29, up about 2.8 times from the September 9 low.

It is understood that on September 7, the new round of regular adjustments to Stock Connect officially took effect. The number of constituents of the Hang Seng Composite Index increased from 534 to 580, and BAIGE DIGITAL (02672.HK) was included, and was thereby added to Stock Connect.

Public information shows that Baige Online Digital Technology Co., Ltd. listed on the Main Board of HKEX on June 29, 2026 at an offer price of HKD 15.60 (the bottom of the HKD 15.60 to HKD 20.28 range), offering 33.3444 million H shares globally (10% for the Hong Kong public offering and 90% for the international offering), raising net proceeds of about HKD 466 million; two cornerstone investors subscribed for a total of HKD 20 million, about 3.34% of the global offering; the Hong Kong public offering was about 242.05 times subscribed and the international offering about 2.44 times. The company is an insurtech company focused on scenario-based insurance, generating revenue from insurance transaction services, precision marketing and digital solutions, and third-party administration (TPA) services, and has built a "9+N" ecosystem covering mobility, flexible human resources, inclusive finance, health and elderly care, and public services, with more than 80 sub-scenarios developed. As at October 29, 2026, the company had about 321 million issued shares.

In terms of its early trading performance, BAIGE DIGITAL opened at HKD 61.100 on its debut, up 291.7% from the offer price, and closed at HKD 73.000, up 367.95% from the offer price, with a turnover of about HKD 387 million that day.

The basis for BAIGE DIGITAL's inclusion lies, first, in its inclusion in the Hang Seng Composite Index, which gave it the "index identity" of a Stock Connect eligible security. Second, the company's market capitalisation remained at a high level around the review period: based on the closing price of HKD 75.000 on June 30, 2026, the total market capitalisation was about HKD 24.047 billion, well above the HKD 4 billion market capitalisation threshold for small-cap Stock Connect eligible securities. In addition, the securities added in this adjustment were concentrated in AI, robotics, innovative drugs and high-end manufacturing, and BAIGE DIGITAL, as a "scenario-based insurance AI" name, is consistent with this structural direction. (The above is an inference based on public rules and data, not an official determination by the exchange. The specific reason for inclusion is subject to the exchange's announcement.)

Although this Stock Connect inclusion provides BAIGE DIGITAL with institutional conditions to broaden southbound capital participation and improve liquidity, the company's share price pulled back noticeably on the effective date: it closed at HKD 37.000 on September 7, down 34.97% on the day, and fell a further 8.43% to HKD 33.880 on September 8; the stock then turned higher, gaining 216.2% cumulatively from the September 7 close to date and 650.0% cumulatively from its offer price of HKD 15.60.

On the operating side, the company's revenue in the first half of 2026 was RMB 788.9 million, up 39.2% year on year; gross profit was RMB 64.663 million, up 27.1%, with a gross margin of 8.2%, down 0.8 percentage points; operating loss was RMB 9.735 million, against RMB 16.129 million a year earlier; loss for the period was RMB 12.161 million, narrowing 43.6% from RMB 21.545 million a year earlier; basic and diluted loss per share was RMB 0.04, against RMB 0.08 a year earlier; the board resolved not to declare an interim dividend. By business, insurance transaction services revenue was RMB 457.5 million, accounting for 58.0% of total revenue, against 74.2% a year earlier; precision marketing and digital solutions revenue was RMB 329.4 million, up 130.4% and accounting for 41.8%, mainly due to an increase in the number of projects undertaken during the period and revenue contribution from newly secured projects; TPA services revenue was RMB 1.927 million, down 41.3%. Cost of sales was RMB 724.2 million, up 40.4%.

In terms of products and business developments, the company disclosed that its MaaS (model-as-a-service) business generated revenue of about RMB 62.10 million in the first three quarters of 2026, up about 730.4% year on year, of which third-quarter revenue was about RMB 25.60 million, up about 29.33% quarter on quarter, with call volume exceeding 7.50 million; the company attributed the growth to continued reuse of its MaaS services by customers and promotion within their internal branches. The company has accumulated more than 9 billion risk service records and has trained a vertical risk control model, "Qingluan". In September 2026, the company, together with the Institute of Artificial Intelligence at Xiamen University and the Xiamen Artificial Intelligence Innovation Centre, established a joint laboratory for vertical AI models in "AI plus risk control applications", focusing on technology development and commercialisation in risk control scenarios.

Kaipan Securities noted in a research report that the company's insurance transaction services contribute stable cash flow and data assets, its digital solutions advance along a path of "project accumulation, standardisation and modelling", and its MaaS business charges by call volume with marginal costs approaching zero and revenue exhibiting compounding characteristics, together forming a structure of "a cash-generating base, digital scale-up, and MaaS determining valuation elasticity".