iQiyi Inc. (NASDAQ: IQ) shares surged 10.27% in intraday trading, outperforming the broader rally in Chinese ADRs. The significant uptick in iQiyi's stock price comes as investors react positively to signs of potential easing in US-China trade tensions and limited impact of new US tariffs on Chinese companies.
The online entertainment video service provider's stock movement was part of a larger trend, with several Chinese ADRs posting notable gains. Other tech giants like Alibaba and JD.com also saw their shares rise by approximately 3%. The rally in Chinese stocks helped keep the MSCI's broadest index of Asia-Pacific shares outside Japan steady, despite pressures from other markets.
Analysts attribute the positive sentiment to recent comments from US President Donald Trump, suggesting a more lenient approach to reciprocal tariffs and potential negotiations regarding the TikTok deal. Jason Chan, a senior investment strategist at Bank of East Asia, noted that Chinese automakers have limited exposure to the US market, which could be cushioning the impact of newly announced auto import tariffs. This development, combined with the overall optimism surrounding Chinese tech stocks, appears to have fueled iQiyi's impressive intraday gain.
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