Huya Inc. (NYSE: HUYA) saw its stock price surge by 5.03% in pre-market trading on Monday, following the announcement of a strategic partnership with Kingsoft Shiyou. The collaboration aims to co-publish the mobile version of the popular social deduction game "Goose Goose Duck" in mainland China.

The partnership, unveiled early Monday, involves joint promotion and publication of the game on major live streaming platforms and Tencent-owned platforms. Huya will also serve as the joint promotion partner for live streaming content related to the game. This move is seen as a significant step for Huya to expand its presence in the mobile gaming market and potentially boost its user engagement and revenue streams.

While financial terms of the deal were not disclosed, investors appear optimistic about the potential impact of this collaboration on Huya's business. The partnership leverages Huya's strong position in the game live streaming sector and could lead to increased user acquisition and monetization opportunities. As the Chinese gaming market continues to grow, strategic moves like this could position Huya for future growth in the competitive digital entertainment landscape.