$HUAYAN ROBOTICS(01021.HK)

Has Huayan Robot given up on being included in Stock Connect?

Huayan Robot has not "given up" on being included in Stock Connect. The main reason for the current lack of funds to maintain the price is that the "greenshoe" price stabilization mechanism after its IPO has expired, and its listing period is still short, not yet reaching the regular review window for Stock Connect.

As of now (May 13, 2026), Huayan Robot is quoted at HKD 17.66, just a step away from its issue price of HKD 17.

1. Timeline for Stock Connect Inclusion: Not Abandoned, Just Not Yet Time

The company was just listed on the HKEX on March 30, 2026, only a month and a half ago. The inclusion in Stock Connect has strict rules and a schedule. For most new listings, they need to be included in the Hang Seng Composite Index (HSCI) during its semi-annual regular review first, and only then can they be added to Stock Connect. Therefore, the company has not subjectively "given up" on inclusion; it typically needs to wait for the subsequent index review cycle (usually assessed at the end of June or December, effective in September or March of the following year).

Looking at the hard indicators, Longbridge data shows that Huayan Robot's current total market capitalization is approximately HKD 9.838 billion, far exceeding the typical HKD 5 billion market cap threshold for Stock Connect. As long as subsequent liquidity meets the requirements, the probability of inclusion still exists.

2. Why No One is "Maintaining the Price": End of Greenshoe Period and Liquidity Receding

The "no one maintaining the price" and thin trading you observed are typical market reactions for Hong Kong new listings after the price stabilization period (greenshoe mechanism) ends.

Greenshoe Mechanism Expired: According to its prospectus and allotment results announcement, the stabilizing actions for new listings usually end on the 30th day after the deadline for submitting the public offering application (i.e., late April). During this period, the stabilizing agent could buy shares in the market to support the price. Once this period ends and the stabilizing funds withdraw, the stock price is left entirely to market supply and demand.

Price and Volume Trends Confirm: Combined with Longbridge candlestick chart data, the stock experienced a significant surge from April 21 to 23, reaching a high of HKD 25.12, with a daily volume as high as 7.69 million shares (turnover of approximately HKD 176 million). However, after entering May, with the end of the stabilization period and early profit-taking, trading activity quickly cooled. Today's (May 13) volume has shrunk to 385,800 shares, with a turnover of only about HKD 6.85 million.

In the short term, in the absence of new positive catalysts and during the initial post-IPO "quiet period," the stock price moving closer to the HKD 17 issue price and consolidating with low volume is a natural reflection of market funds taking a wait-and-see approach.