Kingdee International's stock plummeted 5.11% during intraday trading, hitting a new multi-month low as significant selling pressure emerged.

The sharp decline is primarily attributed to the company's impending removal from the Hang Seng Tech Index. Index compiler Hang Seng Indexes Company announced the decision to replace Kingdee with AI-focused companies MINIMAX-W and Zhipu, with the changes taking effect in early June. As the effective date approaches, passive funds that track the benchmark are systematically unwinding their positions in Kingdee, creating direct and substantial selling pressure on the stock.

Market analysts view this index adjustment as reflecting a shift toward AI-native companies, while traditional enterprise software firms like Kingdee face structural challenges. Notably, the company's management recently conducted a share repurchase in an attempt to stabilize the declining share price, but this effort was overwhelmed by the index-related selling pressure from institutional investors.