Tencent stock continues to rise 2.84% on Friday after a 2.3% gain in prior session. Tencent is Hong Kong listed and trades over the counter in the U.S. Hong Kong-listed Baidu stock, meanwhile, was down more than 3%.

Apple is reportedly in talks with Chinese technology firms Tencent and the privately-held ByteDance about using the companies' AI models for iPhones in China. Tencent stock gained following the news.

Nio rose 5.6%; Li Auto rose 3.6%; Kuaishou fell 3%, Alibaba, Baidu fell over 2%.

China’s short-term bond yields slumped further to reach the psychological milestone of 1% for the first time since the global financial crisis, as traders ramped up bets on monetary easing.

Yields on one-year Chinese sovereign bonds fell for a ninth straight session to 1%. The move comes after 10-year yields dropped past 2% for the first time on record earlier this month.

The declines reflect growing bets that China will undertake deep interest-rate cuts next year, after top leaders switched to a “moderately loose” monetary policy stance to support the struggling economy. Demand for short-dated debt is also rising as the central bank’s pushback against the bond-buying frenzy prompts traders to shift away from longer-dated notes which are more exposed to intervention risks.