iQiyi Inc. (NASDAQ: IQ), the Chinese video streaming platform, saw its stock soar 6.54% in pre-market trading on Wednesday, outpacing the broader rally in Chinese ADRs. This surge comes amid escalating trade tensions between the United States and China, with new tariffs taking effect, and as investors anticipate potential economic stimulus measures from Beijing.
The rally in iQiyi's stock is part of a larger trend affecting Chinese companies listed in the US. Other major Chinese tech firms also saw significant gains, with Bilibili up 9%, Alibaba and XPeng rising 7%, and JD.com and Li Auto climbing 6% in pre-market trading. Chinese ETFs are also showing strong performance, with YINN up 17% and CWEB gaining 14%.
This positive momentum for Chinese stocks comes despite the implementation of new US tariffs on Chinese goods, including hefty 104% duties imposed by President Donald Trump. The market's resilience may be attributed to reports that China's top leaders are planning to meet to discuss measures to boost the economy and stabilize capital markets. These potential initiatives, which could include measures to support domestic consumption and provide export tax rebates, appear to be offsetting concerns about the impact of the new US tariffs on Chinese companies.
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