Tencent Music (TME) saw its stock price surge by 5.00% in Friday's pre-market trading, riding the wave of a broader rally among Chinese ADRs and ETFs. The positive momentum comes as China signals openness to potential trade talks with the United States, sparking optimism among investors in Chinese stocks.

The rally is not isolated to Tencent Music, as several other prominent Chinese tech companies are also experiencing significant gains. YINN, a leveraged ETF tracking Chinese stocks, jumped by 9%, while individual stocks such as XPeng, Alibaba, and NIO saw increases ranging from 3% to 6%. This widespread uptick suggests a renewed confidence in the Chinese tech sector and cross-listed companies.

The catalyst for this market optimism appears to be a statement from China's Commerce Ministry, indicating that they are evaluating the possibility of trade talks with the US. This development marks the first sign of potential negotiations since the recent tariff hikes imposed by the Trump administration. The Ministry noted that senior US officials have repeatedly expressed willingness to engage in discussions, and China is now urging Washington to demonstrate "sincerity" in these potential talks. As investors react positively to this news, Tencent Music and its peers are benefiting from the improved sentiment surrounding US-China trade relations.