Shares of Chinese companies listed in the U.S., including iQiyi Inc. (IQ), rallied in pre-market trading on Monday, following reports that China is considering plans to provide significant liquidity support for its beleaguered equity market.
iQiyi, a leading online entertainment service in China, saw its stock surge over 5.6% in pre-market trading. This surge was part of a broader rally in Chinese American Depository Receipts (ADRs), with companies like JD.com, Li Auto, NIO, Bilibili, and PDD Holdings also gaining between 4% and 6%.
The rally was fueled by reports that China's central bank, the People's Bank of China (PBOC), is weighing plans to unleash at least $113 billion in initial liquidity support for the country's struggling stock market. The measures include setting up a swap facility allowing securities firms, funds, and insurance companies to tap liquidity from the PBOC to buy stocks, as well as a specialized re-lending facility for listed companies and major shareholders to buy back shares and raise holdings.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.