Gaotu Techedu Inc (GOTU) shares jumped 5.28% in pre-market trading on Wednesday, outperforming the broader market. The rally came after China set an ambitious economic growth target of around 5% for 2025 and vowed more support for domestic consumption and the technology industry.
In the annual National People's Congress (NPC) meeting, Chinese policymakers announced a record fiscal deficit target of 4% of GDP, along with plans to boost infrastructure spending and consumer subsidies. The government also signaled support for the application of large-scale AI models, marking the first time AI has been mentioned in a government work report.
The pro-growth policies and tech-focused initiatives fueled a rally in Chinese ADRs traded on U.S. exchanges. Gaotu Techedu, a Chinese education technology company, was among the major gainers, benefiting from the positive sentiment surrounding the tech sector and expectations of increased domestic consumption.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.