--- a/target-ppc/kvm.c
+++ b/target-ppc/kvm.c
@@ -766,7 +766,7 @@ int kvm_arch_handle_exit(CPUPPCState *env, struct
kvm_run *r
         dprintf("handle PAPR hypercall\n");
         run->papr_hcall.ret = spapr_hypercall(env, run->papr_hcall.nr,
                                               run->papr_hcall.args);
-        ret = 1;
+        ret = 0;
         break;
 #endif
     default:

It might also need something like:

diff --git a/hw/spapr_hcall.c b/hw/spapr_hcall.c
index a5990a9..d4d7fb0 100644
--- a/hw/spapr_hcall.c
+++ b/hw/spapr_hcall.c
@@ -545,6 +545,7 @@ static target_ulong h_cede(CPUPPCState *env,
sPAPREnvironmen
     hreg_compute_hflags(env);
     if (!cpu_has_work(env)) {
         env->halted = 1;
+        env->exit_request = 1;
     }
     return H_SUCCESS;