Market Analysis of Kingsoft Cloud (03896.HK) Becoming a Hot Stock in Hong Kong

Kingsoft Cloud (03896.HK) is a leading independent cloud service provider in China, and recently made it to the Hong Kong Stock Market Popularity List on the East Money App. The core catalyst comes from industry-level market expectations: the capital expenditure of China’s large cloud service providers is expected to grow to 500 billion yuan by 2026, an increase of about 20% compared to 2025[1]. This expansion is mainly driven by demand for AI chips—with high-end chips expected to enter the Chinese market, cloud providers will increase investment in computing power infrastructure. Although Kingsoft Cloud closed down 4.1% on December 22, 2025[2], which was higher than the Hang Seng Tech Index’s 0.7% drop that day, as a hot stock, its trading volume is likely to be higher than the 50-day average[0].

1. Industry trend drives popularity: The expansion of capital expenditure in the cloud service industry is driven by demand for AI chips, and this long-term positive factor supports investors’ attention to Kingsoft Cloud.
2. Divergence between hot stock status and price performance: The stock made it to the popularity list but fell in price that day, which may reflect short-term market fluctuations or profit-taking behavior.
3. Technical level signals: According to historical price trends, the recent key support level is in the range of 2.5-2.6 HKD, and the resistance level is around 3.0 HKD[0]; if it breaks through 3.2 HKD, it may start a new upward trend.

• Opportunities
  : The expansion of capital expenditure in the cloud service industry and the rise in demand for AI computing power bring long-term growth potential to Kingsoft Cloud; institutions expect the industry to continue growing[1].
• Risks
  : Tech stocks are generally volatile; facing fierce competition from leading providers such as Alibaba Cloud and Tencent Cloud; the cloud service industry is in an investment phase, with short-term profit pressure; Sino-US tech frictions may affect the supply of AI chips, thereby impacting cloud providers’ capital expenditure plans.

Kingsoft Cloud became a hot stock in Hong Kong due to expectations of capital expenditure expansion in the cloud service industry, and retail investor attention has increased. It closed down 4.1% on December 22, 2025, which was higher than the sector’s decline. Attention should be paid to the support level of 2.5-2.6 HKD and resistance level of 3.0 HKD, while also noting factors such as industry competition, profit pressure, and policy risks.