Shares of iQiyi Inc. (IQ), the leading online video platform in China, surged by over 20% in premarket trading on Wednesday, fueled by a wave of optimism surrounding potential stimulus measures from the Chinese government to support economic growth.

The rally was triggered by comments from Chinese leaders, who pledged to deploy "necessary fiscal spending" to meet this year's economic growth targets. This revived hopes of additional stimulus measures, which could provide a much-needed boost to domestic demand and economic activity across various sectors, including the online video streaming industry.

Beyond the broad market sentiment, iQiyi's stock also got a lift from the company's strategic initiatives to drive growth and cater to evolving viewer preferences. At its recent iJOY Conference, iQiyi announced plans to release over 300 new titles across diverse genres in the coming year, with a particular focus on expanding into short-form dramas through its new "Micro-Drama Theater" and "Short-Drama Theater" offerings.