Shares of iQiyi Inc., a leading Chinese video streaming platform, surged 5.46% in pre-market trading on Tuesday, following China's securities regulator's vow to stabilize the market and provide policy support measures.
The rally in iQiyi's stock was fueled by the news that the China Securities Regulatory Commission (CSRC) pledged to maintain a stable market trend and collaborate with the central bank to enhance the effectiveness of funding facilities aimed at facilitating stock buying. This move comes as Chinese authorities attempt to bolster investor confidence and support the country's economy amid a weak recovery and concerns over potential trade tensions with the United States.
The CSRC's commitment to stabilize market expectations through policy interpretation and prompt responses to critical issues has injected optimism into Chinese stocks, including iQiyi. With the promise of fiscal and monetary stimulus measures, investors are betting on potential tailwinds for the company's growth prospects in the video streaming and entertainment sector.
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