Trip.com Group Limited (TCOM) saw its stock soar by 5.27% in pre-market trading on Monday, riding the wave of optimism surrounding Chinese stocks following positive developments in US-China trade relations.
The surge in Trip.com's stock price comes as Chinese ETFs and ADRs (American Depositary Receipts) experienced significant gains across the board. This upward movement is attributed to the "substantial progress" reported by both the United States and China after two days of trade talks in Switzerland, aimed at de-escalating the ongoing trade war between the world's two largest economies.
While Trip.com was not specifically mentioned in the news, it appears to be benefiting from the overall positive sentiment towards Chinese companies listed in the US. The talks, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, have resulted in an agreement to create a mechanism for further discussions. This development has sparked investor optimism, leading to notable increases in various Chinese stocks, with some ETFs rising by as much as 5%. As a major player in the Chinese online travel industry, Trip.com's stock movement aligns with the broader trend of Chinese ADRs gaining ground on the prospect of improved US-China economic relations.
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