XChange put two verbs in one headline, and only one of them builds anything: "Proposed U.S. AI Business Expansion and Reduction of Mainland China Operations."
$XHG is +94.21% premarket on that 8:30 AM release. It is a $52M company with about 2M shares of float.
Look at where the qualifier sits. "Proposed" is attached to the AI expansion. The reduction applies to operations that already exist. The tape is pricing the part that hasn't happened yet.
This stock's own record has 13 prior sessions where it opened with a gap-up of at least 5%. 69% of those closed below their open and 31% closed above it, with a median open-to-close of -12.40%. Thirteen sessions is a small sample, and a premarket print is not the open.
What still has to happen is the half of the headline marked "Proposed."