Yum China Holdings, Inc. (NYSE: YUMC) continued its upward trajectory in Wednesday's pre-market trading, soaring 5.16% following a strong performance in the previous session. The stock's momentum appears to be driven by growing optimism surrounding US-China trade relations.

The surge comes on the heels of a 5.49% gain during Tuesday's regular trading hours, as investors reacted positively to comments from Treasury Secretary Scott Bessent. Bessent described the ongoing trade war between the United States and China as "unsustainable" and suggested that an agreement between the two economic powerhouses "was possible." These remarks have fueled expectations of reduced tariffs and increased market stability, particularly benefiting companies with significant exposure to China.

As the largest restaurant company in China, operating popular brands such as KFC and Pizza Hut, Yum China stands to gain substantially from any easing of trade tensions. The company's extensive presence in the Chinese market makes it particularly sensitive to developments in US-China relations. Investors appear to be betting that improved trade conditions could lead to better operating environments and potentially increased consumer spending in China, which would directly benefit Yum China's bottom line. The stock's continued rise in pre-market trading suggests that market participants remain bullish on the company's prospects in light of these potential positive developments.