Gaotu Techedu Inc (GOTU) shares jumped 5.28% in pre-market trading on Wednesday, outperforming the broader market. The rally came after China set an ambitious economic growth target of around 5% for 2025 and vowed more support for domestic consumption and the technology industry.

In the annual National People's Congress (NPC) meeting, Chinese policymakers announced a record fiscal deficit target of 4% of GDP, along with plans to boost infrastructure spending and consumer subsidies. The government also signaled support for the application of large-scale AI models, marking the first time AI has been mentioned in a government work report.

The pro-growth policies and tech-focused initiatives fueled a rally in Chinese ADRs traded on U.S. exchanges. Gaotu Techedu, a Chinese education technology company, was among the major gainers, benefiting from the positive sentiment surrounding the tech sector and expectations of increased domestic consumption.