Chinese ADRs and ETFs dived again in premarket trading on Monday after Beijing fired back at U.S. tariffs with its own trade levies, sowing more turmoil in financial markets as investors feared a widening trade war would unleash a deep recession.

YINN fell 24%; XPeng and NetEase fell 14%; Alibaba and Li Auto fell 11%; JD.com and PDD Holdings fell 10%; Bilibili fell 9%; NIO fell 8%.

China, which is now facing U.S. tariffs of over 50%, responded in kind on Friday by slapping extra levies on U.S. imports.

The intensifying spat between the world's two biggest economies threatens to upend trade flows, and besides hitting Chinese earnings, it is also expected to drive a slowdown in global demand at a time of stuttering growth in China.

In the absence of any hint of a backdown from the White House, the focus for investors will be on Beijing to come up with measures to support Chinese exporters and shore up the domestic economy.