Tencent Music Entertainment Group (TME) saw its stock soar 5.04% in pre-market trading on Monday, riding the wave of optimism surrounding Chinese stocks following substantial progress in US-China trade talks. This upward movement aligns with a broader rally among Chinese ETFs and American Depositary Receipts (ADRs) traded in the US market.

The surge in Tencent Music's stock price comes as part of a larger trend affecting Chinese companies listed in the United States. Other notable gainers included the Direxion Daily FTSE China Bull 3X Shares (YINN) ETF, which jumped 5%, while e-commerce giants Pinduoduo (PDD) and JD.com (JD) both climbed 4%. Tech behemoth Alibaba also saw a significant 3% increase.

This positive momentum stems from recent high-level talks between US and Chinese officials in Switzerland, aimed at de-escalating trade tensions. Both sides reported "substantial progress" after two days of negotiations, with plans to establish a mechanism for further discussions. While specific measures are yet to be announced, the market has responded favorably to this diplomatic breakthrough, potentially benefiting Chinese companies like Tencent Music that are exposed to international trade dynamics and investor sentiment.