Shares of New Oriental Education & Technology (EDU) surged over 7% in premarket trading on Thursday as Chinese stocks rallied amid growing optimism over potential stimulus measures by the Chinese government.
Reports on Wednesday indicated that China is considering injecting more than $100 billion into the country's top banks, fueling hopes of a broader economic boost. This news followed earlier announcements of a round of new stimulus measures by the Chinese authorities.
The positive sentiment towards China's economic outlook spilled over to the U.S. markets, with Chinese stocks listed on major U.S. exchanges seeing significant gains. Major Chinese indexes like the Shanghai Composite and Hang Seng Index also soared, rising 2.9% and 3.5%, respectively, on Thursday.
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