China ADRs and ETFs rose in overnight trading on news that members of President-elect Donald Trump’s economic team discussed a gradual approach to ramping up tariffs.

China A50 Index Futures rose 2.2%, CWEB jumped over 6%.

FangDD soared 19%, XPeng rose 8%; JD rose 5%; Alibaba rose 2%.

The possibility of gradually-implemented US tariffs is stirring a note of optimism, given that Trump’s threats to impose levies of as much as 60% on Chinese goods have loomed over markets in Asia. Such a plan may ease inflation concerns and roll back higher Treasury yields as the Federal Reserve gets room to reduce interest rates. Traders also will monitor US inflation data this week that could provide more clues on the Fed’s rate trajectory.

“The news of gradual tariff rollouts globally has created more positive sentiment for the tariff impact on China,” said Billy Leung, investment strategist at Global X ETFs.

Stability tops the agenda in 2025, and every effort will be made to maintain and cement the stabilising trend on the market, the China Securities Regulatory Commission (CSRC) said in a statement on its website after a work conference that spelled out its annual major tasks. The watchdog also said that it would collaborate with the central bank to enhance the effectiveness of the two new funding facilities that were launched last year to facilitate stock buying. The CSRC also vowed to stabilise market expectations through policy interpretation and prompt responses to critical issues.

“The authorities are trying to talk up the market by stepping up support measures during a ‘policy vacuum’ period until March,” said Shen Fanchao, an analyst at Zheshang International in Hong Kong. “While there are some bright spots in China’s economy, the general trend is a weak recovery. There’s growing pressure on a downward revision of corporate earnings.”