Why Tencent, Tencent Music Entertainment, and iQiyi All Soared Today

Shares of Chinese consumer tech stocks Tencent (OTC: TCEHY), Tencent Music Entertainment (NYSE: TME), and iQiyi (NASDAQ: IQ) were rallying on Tuesday, up 6.5%, 15.7%, and 11.7%, respectively, as of 1:15 p.m. ET.On Tuesday, the Chinese government and central bank unveiled the country's biggest stimulus measures since the pandemic. Chinese stocks have been trading cheaply as the country has been experiencing economic weakness for some time, and these consumer-focused stocks were among those that soared in response to Beijing's latest plan to address that weakness.The People's Bank of China announced a slew of stimulus measures. These include lowering a variety of interest rates, such as the medium-term lending rate, prime rates, deposit rates, and the reverse repo rate, which is what banks receive for parking their funds at the central bank. In addition, China lowered the amount of reserves its banks need to keep on their balance sheets, freeing up more funds for lending.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool