China ADRs & ETFs mixed in Wednesday trading. Fangdd rose 9%; KE Holdings rose 7%; YINN rose 5%; Li Auto rose 4%; XPeng, Alibaba rose 3%; Nio rose 2%; PDD rose 0.5%; JD.com fell 4%.

JD.com is entering China's food delivery market with its JD Takeaway platform, Reuters reported Tuesday, citing a Weixin post by the company.

The company reportedly said on Weixin that merchants who register before May 1 will enjoy zero commissions for a full year. JD Takeaway aims to offer complete support to merchants and boost the sustainable growth of the food delivery sector, the report said.

The run-up in Chinese stocks spurred by DeepSeek’s AI model was through less than halfway, as good liquidity and lower interest rates could drive valuation re-rating opportunities ahead for AI-related names, according to UBS.

AI-related stocks had the potential to outperform by 50 to 100%, if previous rallies in 4G, 5G and cloud computing were anything to go by, said James Wang, head of China strategy, at the Swiss bank.

“For the broader market, we see some valuation upside potential from AI,” he said in a note on Wednesday. “Thematic trading could be a feature of this year’s equity market.”

Internet companies were likely to be long-term beneficiaries of cheaper AI models and remained attractive given the cheap valuation and capital return initiatives on offer, he added.

Morgan Stanley expects the AI-driven momentum to hold up in the near term, as global investors start to reassess China’s investibility within the tech and AI space after an extended period of limited attention, analysts led by Laura Wang said in a report on Tuesday.