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:
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.
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