Gaotu Techedu Inc. (GOTU) saw its stock price surge 5.67% in pre-market trading on Monday, as Chinese ADRs and ETFs experienced a broad-based rebound. This upward movement comes in the wake of recent US-China trade tensions that had previously caused a selloff in Chinese stocks.

The recovery in Chinese stocks is widespread, with several prominent Chinese companies listed in the US seeing significant gains. For instance, Alibaba and NIO were up over 5%, while Baidu and Bilibili saw increases of around 3-4%. Chinese ETFs also showed strong performance, with YINN up 11%, CWEB up 8%, and CHAU up 6%.

This rebound follows a tumultuous period where the NASDAQ Golden Dragon China Index plunged more than 6% on Friday, its largest drop since April. The decline was triggered by President Donald Trump's warnings of potential tariff increases on Chinese goods. However, market sentiment improved after Trump later signaled openness to a deal with China, leading to advances in US equity futures early Monday in Asia. Analysts suggest that the recent selloff may present a buying opportunity for investors interested in Chinese stocks.