When Kingsoft Cloud, a Chinese cloud computing company, decided to go ahead with an initial public offering in the United States at the beginning of May, it seemed like a bad idea.
April had not been kind to Chinese companies listed on American exchanges. Shares of Nasdaq-listed Luckin Coffee, a Chinese rival to Starbucks, had been pummeled after the company admitted to cooking its books. The chairman of the Securities & Exchange Commission followed with a blunt warning about the risks of investing in Chinese firms. And Senator Marco Rubio, the Florida Republican, renewed a call for some Chinese companies to be barred from the nation’s capital markets.
But last week, Kingsoft Cloud pulled off one of the biggest initial public offerings of the year, raising $500 million. Shares of the company, which is listed on the Nasdaq stock market, jumped 36 percent in the first week of trading, despite growing concerns about the risks that come with investing in Chinese fir
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