Shares of iQiyi Inc. (IQ), a leading Chinese streaming and entertainment company, soared by 10.95% in pre-market trading on September 30, 2024, as optimism surrounding China's new mortgage stimulus measures fueled a broader rally in Chinese stocks.
The surge in iQiyi's stock price followed China's announcement of steps to lower borrowing costs on mortgages for millions of families. Beginning November 1, homeowners will be able to renegotiate terms with their current lenders, and those with fixed mortgage rates can negotiate new loans based on the latest loan prime rate, a reference rate for mortgage loans.
This move, part of a broader stimulus package, is seen as Beijing's latest attempt to revive the struggling property sector and boost economic growth. By easing mortgage rules and reducing borrowing costs, the government aims to stimulate consumer spending and support domestic consumption, which could benefit companies like iQiyi that rely on the Chinese market.
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