Kingdee International's stock plummeted 5.91% during intraday trading on Tuesday, hitting a new year-to-date low as selling pressure intensified.

The sharp decline follows the confirmed removal of Kingdee International from the Hang Seng Tech Index, which was officially announced on May 22. With approximately RMB 170 billion in mainland onshore fund assets tracking the index, the impending removal has triggered accelerated position unwinding by passive funds ahead of the effective date of June 8.

Despite reporting FY2025 revenue growth of 12.0% year-over-year and achieving a profitability turnaround, Kingdee's stock has faced significant pressure amid a broader market shift in capital allocation from traditional software companies toward AI-native enterprises.