China Equity Strategy [Correction] ChiNext reform can help to sustain the AI-driven rally

Research evidence excerpt

12 May 2026

Equity Research Report

China Equity Strategy

Equity Strategy

China

[Correction] ChiNext reform can help to sustain the

AI-driven rally

◆ Reform focuses on revenue growth and R&D expenses, which

could make ChiNext more attractive than the STAR board

◆ ChiNext is more exposed to overseas AI compute value chain

(25%); STAR50 more exposed to domestic AI compute (62%)

◆ ChiNext index futures likely to be rolled out in 1H27; we see

inflows from institutional investors and limited downside risks

On 10 April 2026, China’s securities regulator introduced a fourth set of listing rules

for ChiNext to support selected companies that are yet to turn profitable and

strengthen financial support for innovative start-ups in emerging and future industries.

ChiNext reform to support the listing of innovative companies. We believe the

reform – the fourth set of listing rules – will improve the coverage and inclusiveness

of the ChiNext board and make it more attractive for innovative companies than the

STAR board. We also expect the rising weight of high-tech companies in the ChiNext

board to bring more inflows from long-term capital and foreign funds and support a

further index re-rating.

Steven Sun*, CFA (Reg. No. S1700517110003)

Head of Research, HSBC Qianhai Securities Limited

HSBC Qianhai Securities Limited

Jeffrey Xie* (Reg. No. S1700523100002)

Analyst, China Equity Strategy Research

HSBC Qianhai Securities Limited

Neal Chen*, PhD (Reg. No. S1700524120001)

Analyst, China Equity Strategy Research

HSBC Qianhai Securities Limited

Lydia Li*, CFA (Reg. No. S1700525040002)

Analyst, China Equity Strategy Research

HSBC Qianhai Securities Limited

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations.

ChiNext index futures to attract larger inflows from institutional investors. The

regulators also mentioned the potential launch of ChiNext index futures and our

analysis points to an official rollout in the first half of next year. We believe index

futures played an important role in lowering index volatility, which would help attract

inflows from long-term capital.…