iQiyi (NASDAQ:IQ) had a good day on Friday. Shares of the Chinese online media giant and former Baidu (NASDAQ:BIDU) subsidiary were up 11.1% at 3:40 p.m. EDT. An iQiyi-produced movie was nominated for two prestigious awards at the Shanghai International Film Festival, which is a lot like an up-and-coming Western studio snagging some Oscar nods.
An iQiyi production titled Blue Amber is on the shortlist for Best Film and Best Cinematography at this year's Shanghai festival under the banner of Asian New Talent Awards, which are aimed at promoting local content producers on a global stage. Two years ago, the same script won Shanghai's New Talent award for Best Film Investment Project, and now the same production is moving on to something more than scriptwriting consideration.
iQiyi is a very young stock that was spun off from the Baidu mothership just two months ago. The company is unprofitable but growing like well-groomed bamboo, and a big part of the long-term strategy involves producing and distributing high-quality content under its own name. So Blue Amber's award nominations are a solid sign that the larger strategy could pay off, and it isn't surprising to see the stock surging on the news.