Kingsoft Cloud Weighs Dual Listing In Hong Kong As China's Geopolitical, Regulatory Risks Trigger Industry-Wide Selloff

Kingsoft Cloud Weighs Dual Listing In Hong Kong As China's Geopolitical, Regulatory Risks Trigger Industry-Wide Selloff
  • China's leading cloud service provider Kingsoft Cloud Holdings Ltd KCweighed a dual listing of its shares on the Hong Kong Stock Exchange.
  • Analyst Rating: JPMorgan analyst Alex Yao downgraded Kingsoft to Underweight from Neutral with a price target of $3.50, down from $8 (17.7% upside). 
  • Yao found the China internet sector is unattractive on a 6-12 month view as the global investors priced in China's geopolitical risks and incremental concerns about regulatory risks. 
  • Speculative growth names like Kingsoft tend to have higher beta than the sector average, given their higher-risk, more aggressive growth assumption and uncertain prospects. 
  • He saw the group to "generally suffer more than larger and more proven Internet names during the sell-off."
  • Price Action: KC shares traded higher by 23.50% at $3.17 on the last check Tuesday.

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