Kingsoft Financial News | Software and datacenter stocks rose collectively, GDS Holdings (09698) increased by 9.82%, Chinasoft Int'l (00354) increased by 9.43%, Kingsoft (03888) increased by 7.51%.
On the news front, Bank of America Securities pointed out that the average increase of the 18 mainland software and datacenter stocks covered by the bank last week was 24%, outperforming the 13% increase of the MSCI Chinese Index, Hang Seng Index, and SSE Composite Index, benefiting from the improvement in investor sentiment brought about by the mainland's loose measures. Even though the short-term impact of loose measures on software stock fundamentals is limited, the bank believes that next year's potential improvement in software spending will trigger strong value restoration of industry stocks after more than two years of value decline.
The bank prefers Kingsoft for its strong game industry and office software artificial intelligence monetization capabilities, forecasts for the recovery of demand in the second half of the year for Chinasoft, and the artificial intelligence-driven demand for GDS Holdings. It also indicates that these stocks have higher growth visibility.
