Gaotu Techedu Inc. (GOTU) shares surged 7.69% in pre-market trading on Wednesday, as Chinese ADRs (American Depositary Receipts) experienced a significant uptick despite the implementation of new US tariffs on Chinese goods. This movement aligns with a broader trend of Chinese stocks showing resilience in the face of escalating trade tensions.

The pre-market rally for GOTU comes as part of a larger surge in Chinese ADRs overnight. Notable gains were observed across various sectors, with education technology peer Bilibili rising 8%, while other prominent Chinese companies such as XPeng, Trip.com, and Alibaba saw increases of around 6%. This widespread rally suggests a strong investor sentiment towards Chinese stocks, potentially benefiting companies like Gaotu Techedu.

The positive movement in Chinese ADRs occurs against the backdrop of President Donald Trump's "reciprocal" tariffs taking effect, including substantial 104% duties on Chinese goods. These measures, part of an intensifying global trade war, were expected to trigger more widespread selling across financial markets. However, the resilience shown by Chinese stocks indicates that investors may be focusing on other factors or potential mitigating measures.

Adding to the complex picture, reports suggest that China's top leaders are planning to convene a meeting to discuss measures to boost the economy and stabilize capital markets. This proactive approach by Chinese authorities, which may include initiatives to support domestic consumption and provide export tax rebates, could be contributing to the positive sentiment surrounding Chinese ADRs, including Gaotu Techedu.