Shares of Kingsoft Corporation Limited (HKG: 03888) surged more than 10% during the afternoon session. At the time of writing, the stock was up 9.92% to HKD 24.38, with a turnover of HKD 640 million.

Background on the Move

The significant price movement follows the release of an interest disclosure on the Hong Kong Stock Exchange. The filing shows that on June 8, Xiaomi Corporation increased its stake in Kingsoft through open market purchases. Following this transaction, Xiaomi's shareholding in Kingsoft has risen to 5.39%.

This acquisition by the group has indirectly led to an increase in the personal shareholding of Lei Jun, the founder of both companies. A representative from Xiaomi clarified that the buying entity was the group itself, and all necessary compliance disclosures for the transaction have been completed. The change in Lei Jun's holding percentage is a secondary effect of the group's purchase and does not represent a personal investment by him.

Xiaomi's Strategic Outlook

Xiaomi has explicitly stated its continued confidence in the long-term development prospects of Kingsoft. The company also emphasized the high value it places on the future potential for strategic collaboration between the two firms.