Chinese ADRs rebounded in morning trading Tuesday after China’s securities regulator pledged to stabilise the market after a wobbly start to the year. YINN rose 7%; XPeng rose 9%; Li Auto and Bilibili rose 5%; JD.com and PDD Holdings rose 4%; NIO, Baidu, and Alibaba rose 2%.

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.”

Investors have refrained from big bets on stocks as they await more clarity on how China will enforce the fiscal and monetary stimulus promised at top-level meetings last year. They are also waiting to see whether new tariffs will be levied on Chinese exports after the inauguration of US president-elect Donald Trump in a week. March will be the next critical window to monitor China’s policy development, with legislators gathering for the annual National People’s Congress to deliberate on the nation’s growth target and major economic policies.

Some global investment banks are positive on Chinese stocks. UBS Group said that stocks are likely to be higher at the end of 2025 thanks to improved corporate earnings and policy support that may help overcome the more than two-year deflation trend, joining the chorus of Goldman Sachs and HSBC Holdings.