Why Chinese Stocks Futu, GDS Holdings, and New Oriental Education & Technology Rose Today

Economic Outlook - The Chinese government has set a GDP growth target of 5% for 2025, which aligns with its medium- and long-term goals [2] - A budget deficit target of 4% of GDP has been announced, which is 1% higher than the previous year, marking the largest deficit since 2010 [2] Stimulus Measures - The government plans to inject nearly $179 billion in long-term treasury bonds, approximately$69 billion in bonds to support large commercial banks, and $610 billion in special-purpose bonds to assist local governments facing financial difficulties [3] - The intention to expand cooperation in the science and technology sector and deepen reforms in investment and financing within the capital market has been highlighted [4] Market Response - Chinese stocks, including Futu Holdings, GDS Holdings, and New Oriental Education & Technology, experienced significant gains, with Futu up 12%, GDS up 10%, and New Oriental up roughly 6% [1] - The tech sector is showing positive momentum, driven by government stimulus and advancements in artificial intelligence [6] Company Insights - Futu Holdings operates as a digital wealth management and online brokerage platform, facilitating investments for both Chinese citizens and foreigners [7] - GDS Holdings, which runs data centers, has benefited from the AI sector's growth [7] - New Oriental Education & Technology is an online tutoring and education platform that has also seen stock price increases [7] Trade War Context - The ongoing trade war with the U.S. is contributing to market volatility, but there are signs of recovery in Chinese stocks [8] - The Chinese government is responding to U.S. tariffs with retaliatory measures, indicating a commitment to defend its economic interests [5]