Shares of Gaotu Techedu Inc. (GOTU), a leading Chinese online education platform, plunged 14.64% in pre-market trading on Monday, October 8, 2024, as optimism among investors over China's anticipated economic stimulus measures quickly dissipated.
The steep decline in Gaotu Techedu's stock price was part of a broader selloff in U.S.-listed Chinese stocks, which occurred after Zheng Shanjie, chairman of China's National Development and Reform Commission, failed to provide detailed plans to bolster market confidence during a conference.
Chinese stocks initially opened higher after a week-long break, buoyed by expectations of government support for the economy. However, the euphoria was short-lived as investors grew concerned about the lack of concrete measures announced by the authorities. Alongside Gaotu Techedu, other Chinese companies, including e-commerce giants like Alibaba and JD.com, electric vehicle makers like NIO and Xpeng, and technology firms like Baidu and Bilibili, witnessed significant declines in their pre-market trading.
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