Z.AI (02513) surged 14.97% in intraday trading on Friday, driven by a research report forecasting its potential inclusion in the Hang Seng Index and the southbound Stock Connect program.

A leading investment bank projected that Z.AI meets the criteria and ranks high on the candidate list for the upcoming Hang Seng Index semi-annual review. The bank also estimated that the stock could be among 49 companies likely to join the Hang Seng Composite Index, which would subsequently make it eligible for southbound trading under the Stock Connect scheme. With passive funds tracking the Hang Seng Tech Index alone exceeding $50 billion, the anticipated inclusion is expected to trigger significant capital inflows, prompting a strong rally in the stock.

The final results of the index review are scheduled to be announced in late August, but market participants are already positioning ahead of the expected rebalancing, which could lead to abnormal trading volumes in the final minutes before the effective date.