Gaotu Techedu Inc. (GOTU) saw its stock soar 5.72% in intraday trading on Thursday, driven by growing optimism surrounding China's plans to bolster economic growth through stimulus measures, particularly focused on supporting the technology and AI sectors.

The rally in GOTU shares came amid a broader uptrend in Chinese equities, fueled by expectations that the Chinese government will introduce a range of supportive policies to achieve its newly set annual growth target. Key factors contributing to the optimism include:

• China's top economic officials announced plans to "choose timing this year" to reduce interest rates and banks' reserve requirements, signaling looser monetary policies ahead.
• Authorities confirmed plans for a "special campaign" to boost consumption, a top priority for driving economic growth in 2025.
• The PBOC outlined measures to support larger technology firms in issuing bonds and expand relending to the tech sector, reaching up to 1 trillion yuan.

Brokerage firms like Goldman Sachs further amplified the positive sentiment, raising their target prices for Chinese and emerging markets stocks, anticipating an AI-powered rally and positive impact from China's fiscal stimulus announcement during the "Two Sessions" event.