China ADRs and ETFs continued to rally in overnight trading as a correction for the largest US tech firms turned investor attention to their Chinese counterparts, which trade at cheaper valuations.

YINN, KE Holdings up more than 10%; Li Auto, XPeng up 9%; JD.com up 8%; Alibaba up 6%; PDD Holdings, Baidu up 3%.

“There’s an ongoing rebalancing for global funds and the Chinese market has regained favour,” said Melody Lai, an analyst at SPDB International in Hong Kong. “Funds have been rotating from the US and India to China and Europe, where the positionings are low among global investors. China’s markets have the valuation edge among the world’s key stock markets. So foreign inflows are expected to continue in the near term.”

Investors have been returning to China’s biggest tech stocks after a pullback triggered by overbuying, with optimism rising that Beijing would use more resources this year to support innovation as the China-US rivalry intensifies. Premier Li Qiang called for more technological breakthroughs in a visit to the nation’s largest state-owned telecoms operators, according to China Central Television.