Biren Tech Shares Surge on Potential Inclusion in Southbound Trading and Index Upgrade

Stock News
05/26

Biren Tech (06082) saw its shares rise nearly 8% in the afternoon session. At the time of writing, the stock was up 7.2% to HK$52.4, with a turnover of HK$363 million. The surge follows the announcement by Hang Seng Indexes Company of its quarterly review results, which includes Biren Tech in the Hang Seng Composite Index. The changes are set to take effect on June 8. Furthermore, the company is poised to become eligible for Southbound Stock Connect, having met a series of criteria including market capitalization and liquidity. This would allow mainland investors to trade the stock directly through the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect schemes. BOC International noted in a research report that Biren Tech, as a leading domestic GPGPU manufacturer, is well-positioned to benefit significantly from the exponential growth in China's demand for AI computing power. A recent report from CLSA suggested that China's computing power shortage is likely to persist at least until 2027. Biren Tech is expected to capitalize on this supply-demand imbalance and the trend towards domestic production, standing out due to its strong delivery capabilities.

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