Trip.com Group Limited (TCOM) saw its stock surge 5.27% in Monday's trading session, riding the wave of optimism surrounding improved US-China trade relations. The company, along with other Chinese ADRs and ETFs, benefited from reports of "substantial progress" made during recent trade talks between the two economic powerhouses.

The positive momentum comes after US and Chinese officials concluded two days of negotiations in Switzerland, aimed at de-escalating trade tensions. Chinese Vice Premier He Lifeng described the talks as "an important first step" toward resolving differences, while both sides agreed to establish a mechanism for further discussions. This development has sparked a rally across Chinese stocks traded in the US market.

As a major player in China's online travel industry, Trip.com Group stands to gain significantly from improved US-China relations and potential easing of trade restrictions. The company's stock movement aligns with broader market trends, as other Chinese tech giants and e-commerce platforms also experienced substantial gains. For instance, the article mentions that Direxion Daily FTSE China Bull 3X Shares (YINN) rose 5%, while stocks like Alibaba, JD.com, and Pinduoduo saw increases of 3-4%.

Investors appear to be betting on a more stable and cooperative economic environment between the US and China, which could lead to increased cross-border travel and business activities. This optimism is likely driving the surge in Trip.com's stock price, as the company stands to benefit from any improvements in international relations and potential growth in both domestic and international tourism.