Understanding the Market | Kingsoft Cloud surged over 8% in the afternoon as the company accelerated investments in AI infrastructure, continuing to benefit from the increasing demand from Xiaomi and the Kingsoft ecosystem

Kingsoft Cloud surged over 8% in the afternoon, and as of the time of writing, it rose 6.58% to HKD 2.43, with a trading volume of HKD 217 million. On the news front, on November 11th, Kingsoft Cloud announced on the Hong Kong Stock Exchange that it had signed a financing lease agreement with CITIC Financial Leasing to accelerate investments related to AI infrastructure; according to the agreement, the total principal amount of the financing lease is HKD 250 million, with a term of three years and an initial annual interest rate of 4.35%. CICC published a research report stating that Kingsoft Cloud announced the signing of a financing lease agreement with CITIC Financial Leasing to accelerate investments related to AI infrastructure. Kingsoft Cloud also benefits from the increasing demand from Xiaomi and the Kingsoft ecosystem, and is expected to be the first to gain resource demand increments from the AI business layout of ecosystem clients. CICC has raised its revenue forecasts for the group for the next two years by 1.5% and 5.7%, respectively, to RMB 7.5 billion and RMB 8.3 billion, considering that Kingsoft Cloud's investment pace in AI computing power is faster than expected and the demand scale is higher than anticipated