iQiyi Inc. (IQ) saw its shares soar 5.5% in pre-market trading on Friday, riding on the wave of optimism surrounding Chinese tech stocks. The video streaming platform's rally was fueled by a combination of upbeat earnings from tech giants, easing regulatory concerns, and the meteoric rise of domestic AI startup DeepSeek.

The broader tech sector in China has been on a tear in recent weeks, with the Hang Seng Tech Index entering a bull market on enthusiasm over DeepSeek's breakthrough AI model. Investors are re-evaluating the nation's leading internet companies, betting that they will benefit from the integration of advanced AI technologies.

Adding to the positive sentiment is Beijing's perceived shift towards a more supportive stance for private enterprises and capital markets. President Xi Jinping's recent meeting with Alibaba founder Jack Ma and other tech executives has spurred optimism that the government is taking a more conciliatory tone in fostering the sector's development.