Chinese ADRs fell in morning trading Friday, as disappointing results from Baidu and downbeat guidance from PDD Holdings heightened jitters about corporate earnings and China’s growth outlook.

YINN fell 7%; XPeng fell 5%; iQiyi, KE Holdings, and PDD Holdings fell 4%; Bilibili and Alibaba fell 3%; Li Auto, Baidu, and Trip.com fell 2%; NetEase and NIO fell 1%.

A slew of lacklustre results from the Chinese companies, including Alibaba, Baidu, and PDD Holding underscore the weakness in China’s economic recovery and the urgency for policymakers to do more to ramp up growth. Investors have become impatient and opted to exit equity markets after fiscal measures approved by lawmakers this month to sell bonds to tackle the hidden debt crisis at local governments fell short of market expectations.

Meanwhile, US Republican Governor of Texas Greg Abbott ordered state agencies to cease investing state funds in China and sell at the first available opportunity, citing financial and security risks.

“Equity markets could be bumpier in 2025 with a deflationary environment, persistent downwards earnings pressure and rising geopolitical concerns,” said Laura Wang, a strategist at Morgan Stanley in Hong Kong.