Gaotu Techedu Inc. (NYSE: GOTU) saw its stock price surge by 5.15% in pre-market trading on Monday, as U.S.-listed Chinese shares experienced a broad-based rally. The online education firm's stock movement is part of a larger trend mirroring gains in mainland China and Hong Kong markets.
The rally extends beyond the education sector, with companies across various industries seeing significant gains. E-commerce giants like Alibaba and JD.com rose 3.5% and 1.8% respectively, while PDD Holdings jumped 11.5% following strong Q2 results. Other notable gainers included NetEase (up 5.6%), Baidu (up 3.2%), and NIO (up 6.7%).
This upward movement is attributed to abundant liquidity in the market, which is fueling bullish sentiment across the region. Rare earth and property stocks are leading the gains in mainland China and Hong Kong. The positive momentum is also reflected in China-focused ETFs, with the KraneShares CSI China Internet ETF gaining about 2% and the Direxion China CSI Daily Bull 2X advancing 3.4%. As markets continue to monitor the performance of Chinese stocks, investors appear to be showing renewed confidence in the sector despite ongoing economic challenges.
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