Shares of iQiyi Inc. (IQ), China's leading online video platform, surged by over 5% in pre-market trading on September 27, 2024, driven by a combination of factors. The rally was fueled by expectations of economic stimulus measures from the Chinese government and the company's strategic growth initiatives.
The Chinese authorities announced a reduction in the reserve requirement ratio for banks and lowered a key policy rate, aiming to create a supportive monetary and financial environment for economic growth. This move revived hopes of additional stimulus measures, which could provide a much-needed boost to domestic demand and economic activity across various sectors, including the online video streaming industry where iQiyi operates.
Beyond the broader market sentiment, iQiyi's stock also received a lift from the company's plans to expand its content offerings. At its recent iJOY Conference, iQiyi unveiled its strategy to release over 300 new titles across diverse genres in the coming year, with a particular focus on expanding into short-form dramas through its new "Micro-Drama Theater" and "Short-Drama Theater" offerings. This strategic move to cater to evolving viewer preferences has been well-received by investors, who anticipate positive implications for the company's growth prospects.
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