Kingdee International's stock price plummeted 8.23% during the intraday session on Wednesday, marking a sharp reversal from its recent performance.

The sell-off is primarily attributed to the approaching effective date for the company's removal from the Hang Seng Tech Index, which is set for June 8. This has triggered selling pressure from passive funds that track the index. Furthermore, the stock had experienced a significant rebound of over 20% in the two prior trading sessions, driven by company buybacks and optimism around AI commercialization, leading to short-term profit-taking that amplified the downward move.

Broader market sentiment also played a role, as overnight weakness in overseas Software-as-a-Service (SaaS) stocks weighed on the enterprise software sector in the Hong Kong market.