# China Physical AI Index

> A rules-based research index by Tech Buzz China tracking the public-equity performance of Chinese companies whose business depends on AI being embodied in the physical world — robots, autonomous vehicles, drones, and the AI software and components that make them work.

This is an information product, not an investment product. The Index is published by Tech Buzz China for informational and educational purposes only. It is not investment advice and is not affiliated with any fund or ETF.

## Definition

Physical AI is the application of AI to systems that perceive, decide, and act in the physical world. The Index adopts Deloitte's anchor definition: "Physical AI refers to artificial intelligence systems that enable machines to autonomously perceive, understand, reason about, and interact with the physical world in real time."

## Scope

In-scope: humanoid robots, industrial and collaborative robots, service robots, autonomous vehicles and robotaxis, drones, sensors and perception (lidar, vision, MEMS), actuators and components, edge AI compute, embodied-AI software, smart-manufacturing equipment for Physical AI products, and connectivity for embodied systems.

Out of scope: general-purpose AI software (LLMs, search, ad tech), agricultural automation, surgical robots in v1, generic factory equipment, EV makers without material autonomy programs.

## Listing universe

Mainland China A-shares (Shanghai, Shenzhen, STAR), Hong Kong H-shares, and select US-listed Chinese ADRs.

## Investability screen

Excludes companies on OFAC SDN or NS-CMIC lists (US persons cannot hold). Includes companies on the Commerce Entity List or DoD §1260H with an asterisk — these restrict US tech exports or government procurement but do not restrict US-person investment.

## Weighting

Float-adjusted market cap × Physical AI revenue exposure. Capped at 10% per stock and 35% per sub-sector. Quarterly review, semi-annual rebalance.

## Current state (May 11, 2026)

- 41 constituents · 24 pure-plays · 17 diversified
- Index value: 2,693.38 (base 1,000 on Jan 2, 2024)
- Since-inception total return: +169.34% (vs CSI 300 +45.35%)
- Total market cap: $355B · PAI-adjusted: $198B
- Components sub-sector at the 35% cap

## Resources

- [Overview](https://physicalai.techbuzzchina.com/): /
- [Constituents](https://physicalai.techbuzzchina.com/constituents.html): /constituents.html
- [Methodology](https://physicalai.techbuzzchina.com/methodology.html): /methodology.html
- [About + watch list + references](https://physicalai.techbuzzchina.com/about.html): /about.html

## Related

- [Tech Buzz China main site](https://techbuzzchina.com)
- [Humanoid Robotics Tracker](https://robotics.techbuzzchina.com) — sister project covering ~400 Chinese robotics companies (private and public)