On June 9, Kingsoft rose 10.37% in regular trading, trading at HK$24.48 per share. The rebound was driven by the dual catalysts of a strategic stake increase and the clearing of index-related selling pressure.

On the news front, Xiaomi Group disclosed via the HKEX that it had increased its holdings of Kingsoft on the open market, raising its stake to 5.39%. Xiaomi stated it remains firmly optimistic about Kingsoft's long-term development and the strategic synergy prospects between the two companies. Meanwhile, the Hang Seng Tech Index officially removed Kingsoft effective June 8, meaning the passive fund rebalancing sell-off has been fully absorbed.

Earlier on June 3, Kingsoft had declined over 5% as markets braced for the impending index removal and multiple broker target price cuts. Bank of America lowered its target to HK$24 while Citi cut to HK$33, both citing narrowing gaming margins and a 22% year-over-year decline in Q1 gaming revenue. With the index adjustment overhang now resolved and fresh institutional buying support from Xiaomi, market sentiment has shifted toward recovery.

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