Shares of iQiyi Inc. (IQ), a leading online entertainment service in China, soared by 15.19% on Monday, September 24, 2024, as part of a broader rally in Chinese stocks listed in the U.S. The surge was fueled by reports that China's central bank, the People's Bank of China (PBOC), is considering plans to unleash at least $113 billion (800 billion yuan) in initial liquidity support for the country's struggling equity market.
According to reports, the measures under consideration include setting up a swap facility allowing securities firms, funds, and insurance companies to tap liquidity from the PBOC to buy stocks. Additionally, a specialized re-lending facility for listed companies and major shareholders to buy back shares and raise holdings is also being considered.
The proposed liquidity support plans fueled optimism among investors, leading to a rally in Chinese American Depository Receipts (ADRs) listed in the U.S., including iQiyi. The company's stock surged nearly 11% in Monday's trading session, as investors welcomed the potential boost to China's equity market and broader economy.
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