Kingsoft Cloud Holdings Ltd (KC) saw its stock price surge 6.33% in pre-market trading on Monday, following news that China's Ministry of Commerce has adopted the WPS format for official announcements. This development highlights the growing influence of Kingsoft's software products in government circles.
The catalyst for this stock movement was an announcement from China's Ministry of Commerce on October 9, 2025. The ministry issued Announcement No. 61 of 2025, implementing export controls on certain overseas rare earth-related items. What caught investors' attention was not just the content of the announcement, but the format in which it was published - WPS, the office software independently developed by Kingsoft Office, a subsidiary of KINGSOFT group.
This adoption of WPS format by a key government ministry is seen as a strong endorsement of Kingsoft's software solutions. According to Kingsoft Office's 2024 financial report, WPS Office's global monthly active devices (MAD) had already exceeded 632 million, marking a 6.22% year-over-year growth. The use of WPS format in government communications could further boost these numbers, potentially leading to increased revenue and market share for Kingsoft and its cloud services division. Investors appear to be betting on this positive outlook, driving the stock price of Kingsoft Cloud Holdings Ltd higher in anticipation of potential growth in the company's cloud services business.