Shares of Gaotu Techedu Inc., an online education provider based in China, surged nearly 16% on Monday as the company's U.S.-listed stock was caught up in a broad rally for Chinese equities. The strong gains came after Beijing unveiled a new round of stimulus measures aimed at reviving the domestic economy.
Gaotu's stock jumped 15.95% to close at $4.92 as investors piled into Chinese technology and internet firms on hopes that the economic support from authorities would boost consumer spending and corporate earnings. The upswing was part of a wider advance that saw major U.S.-traded Chinese companies like Alibaba, JD.com, and electric vehicle makers like Nio and Li Auto also post substantial gains.
Analysts say the rally was fueled by recent moves from Chinese policymakers to cut benchmark lending rates and allow easier access to debt for property developers, among other pro-growth policies. The measures are aimed at shoring up China's sputtering economy amid persistent COVID-19 lockdowns and a prolonged housing slump.
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