Now Streaming: a volatile Chinese tech stock

Abstract

iQiyi offers video streaming services, a superfluous good with demand highly dependent on a country’s economic conditions. In order to forecast this demand, a macroeconomic analysis for China was performed. That analysis found that the economic growth exhibited in past years was essential for the success of products such as iQiyi’s. It also found that in 2019 economic conditions and consumer confidence deteriorated, mainly because of the trade war with the U.S. Despite a deal being reached between the two countries, the issues between them are extremely complex and tension should resurface in 2020.