Kingsoft Cloud Stock Is Tumbling Wednesday: What's Going On?

Kingsoft Cloud Holdings Ltd KC shares are tumbling Wednesday after the company announced an offering. Shares of U.S.-listed Chinese companies are also facing selling pressure amid rising global trade tensions.

What To Know: China-based cloud services provider Kingsoft Cloud commenced an underwritten public offering of 18.5 million American depositary shares (ADS) at a price of $11.27 per ADS.

Kingsoft Cloud expects to grant the underwriters a 30-day option to purchase additional American depositary shares. All shares in the offering will be offered by Kingsoft Cloud.

Kingsoft Cloud stock moved lower when the offering was announced before the market open. Momentum accelerated to the downside after the company priced the offering around the market open.

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Kingsoft Cloud stock has continued to trend lower throughout Wednesday’s session. The stock appears to be facing additional selling pressure following a Wall Street Journal report suggesting the Trump administration plans to use tariff negotiations to pressure trade partners into limiting their dealings with China.

The plans include asking more than 70 countries to stop China from shipping goods through their countries and to reject cheap Chinese goods coming into their economies in an effort to stop China from evading tariffs.

The report indicates that the precise plans could vary significantly from country to country, depending on each country’s level of involvement with the Chinese economy.

The Wall Street Journal reported that Treasury Secretary Scott Bessent is one of the people pushing this strategy. Bessent reportedly pitched the idea to President Donald Trump during a meeting at Mar-a-Lago earlier this month. The strategy has reportedly gained traction among Trump officials more recently.

KC Price Action: Kingsoft Cloud shares were down 17.9% at $10.84 at the time of publication Wednesday, according to Benzinga Pro.

This illustration was generated using artificial intelligence via Midjourney.