Kingsoft surges on bets China will use its programmes over MS Word

Beijing Kingsoft Office Software Inc.’s shares surged after the Chinese government used the company’s product for a major policy announcement, reflecting optimism about future demand.

The firm’s Shanghai-listed stock rose as much as 18% on Monday, the most since February. It was one of the best performers in the benchmark CSI 300 Index, which fell 1.7% after trade tensions re-escalated between the US and China.

The Hong Kong-listed shares of the company’s parent Kingsoft Corp. gained as much as 19%.


The surge came after China’s Ministry of Commerce used Kingsoft’s WPS software for a document attached to its Thursday announcement of rare-earth export controls, with local media Securities Times saying the ministry had previously used Microsoft’s Word or PDF for such releases. The authorities’ move strengthened hope that companies such Kingsoft will increasingly benefit from a push for the country’s self-reliance in technology.

“This move is expected to establish WPS as the designated format for government communications in China, accelerating its adoption across public institutions and various industries,” said Shen Meng, director at Beijing-based investment bank Chanson & Co. US restrictions targeting core softwares have created favorable conditions for the growth of domestic alternatives, he added.

Kingsoft’s stock rally also inspired strong gains in its industry peers. Shares of Yonyou Network Technology Co. rose as much as 9.5%, while those of Fujian Rongji Software Co. added 10%. ZWSOFT Co.’s shares soared 14%.