Chinese ADRs jumped again in premarket trading on Friday, as a slew of upbeat earnings boosted optimism toward the sector. YINN rose 5%; Bilibili and Li Auto rose 6%; iQiyi and Alibabarose 5%; XPeng and PDD Holdings rose 4%; Baidu and Tencent Music, and NIO rose 3%; JD.com and NetEase rose 1%.

The Chinese e-commerce giant Alibaba reported sales that beat estimates. Bilibili Inc. also reported better-than-expected results.

Chinese technology shares have been on a tear in recent weeks as local AI startup DeepSeek’s breakthrough prompted investors to re-evaluate the nation’s leading internet companies. The Hang Seng Tech Index entered a bull market earlier this month on enthusiasm over DeepSeek’s AI model. More recently, President Xi Jinping’s recent meeting with Alibaba founder Jack Ma and other tech executives also spurred optimism that Beijing is taking a more conciliatory tone in fostering the sector’s development.

Chinese stocks are likely to benefit from better corporate governance, improved geopolitical conditions and Beijing's vow to support the private sector, Morgan Stanley analysts said, even as U.S. tariff policies drive volatility in global markets.

Wall Street banks such as Goldman Sachs, Citi and Bank of America have changed their stance on China since the DeepSeek-triggered tech rally, saying the bull case is getting stronger for Chinese stocks due to the AI breakthrough and Beijing's pro-business shift.