Kuaishou Technology (01024.HK) saw its stock price surge by 5.61% in intraday trading on Wednesday, as investors reacted positively to China's latest monetary policy easing measures. The significant uptick in Kuaishou's shares comes amid a broader rally in Chinese stocks, following the People's Bank of China's (PBOC) announcement of key rate cuts and reserve requirement ratio reductions.
In a move to bolster the economy amidst ongoing trade tensions with the United States, the PBOC cut its seven-day reverse repurchase rate to 1.4% from 1.5% and announced plans to lower the reserve requirement ratio for banks by half a percentage point. These measures are expected to inject approximately 1 trillion yuan ($139 billion) in long-term liquidity into the financial system, potentially stimulating economic growth and business activity.
As a leading player in China's technology sector, Kuaishou stands to benefit from the improved liquidity conditions and potential boost to consumer spending. The monetary easing could lead to increased investment in digital advertising and e-commerce, two key revenue streams for the short-video platform. Additionally, the stimulus measures may help offset some of the negative impacts of the ongoing trade war, providing a more favorable operating environment for Chinese tech companies like Kuaishou.
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