Kingsoft Corporation Ltd (03888.HK) saw its stock price plummet by 5.01% during intraday trading on Wednesday, as investors reacted to news of a significant share issuance. The company announced that it had issued a total of 10.1 million new shares to bondholders who had exercised their conversion rights.

According to the company's statement, the convertible bonds were converted at an adjusted price of HK$34.77 per share. This issuance of new shares has likely raised concerns among investors about potential dilution of existing shareholdings, which could explain the sharp decline in the stock price.

The conversion of these bonds into shares may have implications for Kingsoft's capital structure and future financial flexibility. While it reduces the company's debt burden, it also increases the number of outstanding shares, potentially impacting earnings per share. Investors appear to be reassessing the stock's value in light of this development, leading to the observed downward pressure on the share price.