Gaotu Techedu Inc. (GOTU) saw its stock surge 5.74% in pre-market trading on Monday, as Chinese ADRs and ETFs rallied following positive developments in US-China trade relations. The jump in GOTU's share price aligns with a broader trend of Chinese stocks benefiting from the recent trade progress between the world's two largest economies.

The significant uptick comes after the United States and China agreed to major reductions in tariffs for a 90-day period. According to a joint statement released in Geneva, the US will reduce its combined 145% levies on most Chinese imports to 30%, while China will drop its 125% duties on US goods to 10%. This move is aimed at cooling trade tensions and providing both nations with additional time to resolve their differences.

The positive sentiment has boosted Chinese ADRs across the board, with education technology companies like Gaotu Techedu riding the wave of optimism. Investors are likely viewing this development as a potential catalyst for improved business conditions and growth opportunities for Chinese firms operating in or connected to the US market. As talks continue and a mechanism for further discussions is established, the market will be closely watching for any additional progress that could further benefit Chinese stocks listed on US exchanges.