On May 20, Kuaishou-W fell 3.11% in regular trading to HK$47.56 per share, with turnover of HK$348 million, extending a sustained pullback that has now erased all gains from the Kling AI spin-off announcement.

The decline reflects continued market skepticism toward the company's proposed spin-off of its Kling AI video generation business. On May 12, Kuaishou confirmed it was evaluating a restructuring plan for Kling AI at a reported $20 billion valuation with $2 billion in pre-IPO fundraising. The stock initially surged nearly 10% but has since retreated below its pre-announcement level. Analysts cite insufficient disclosure from management during the pre-earnings quiet period ahead of the May 27 quarterly report, as well as intensifying competition from Bytedance's Seedance and Alibaba's HappyHorse. Market participants note the current share price implies only modest option value for the spin-off, with core business alone valued at approximately HK$47 per share under broker models.

Within the Interactive Media and Services sector, the overall tone remained weak. TENCENT fell 0.3%, BILIBILI-W fell 4.87%, BIDU-SW fell 2.27%, MEITU fell 3.21%, and NEWBORNTOWN fell 0.59%.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)