Shares of Knowledge Atlas opened lower but quickly reversed course, surging more than 13% against the broader market trend.

As of writing, the stock was trading at HK$1,470, with a turnover exceeding HK$1.3 billion.

The significant move follows the company's formal inclusion in the Hang Seng Tech Index, which took effect today.

Previously, the company announced via a Hong Kong exchange filing that its board of directors, at a meeting held on June 1, proposed applying to relevant Chinese regulatory authorities for the allotment and issuance of A-shares.

The proposal also includes an application for the listing and trading of these A-shares on the Shanghai Stock Exchange's Science and Technology Innovation Board.

The proposed A-share issuance would represent between 2% and 8% of the company's total share capital following the completion of the offering, excluding any shares that may be issued due to the exercise of an over-allotment option.

This translates to no fewer than 9,098,800 and no more than 38,769,000 new A-shares.

The board also passed additional resolutions related to the proposed A-share issuance, which will be submitted for shareholder approval at the annual general meeting.