China ADRs & ETFs mixed in premarket trading. Baidu rose 2%; Bilibili, Alibaba up 0.5%; Kingsoft Cloud fell 5%; YINN, Li Auto fell 4%; XPeng fell 3%; PDD fell 2%; NIO, JD.com fell 1%.

Chinese technology stocks fell as traders took some money off the table following a rally driven by optimism over the country’s artificial intelligence potential.

Thursday’s setback may do little to dent insatiable demand for the sector, after the rise of Chinese AI startup DeepSeek has sparked a hunt for beneficiaries from the country’s advancement in large language models.

Chinese ADRs soar in overnight trading, then surrender part of the rally.

Thursday’s setback may do little to dent insatiable demand for the sector, after the rise of Chinese AI startup DeepSeek has sparked a hunt for beneficiaries from the country’s advancement in large language models.

“The Chinese stock market has been on a long upward trend, but today we finally see some signs of profit-taking,” said Dickie Wong, executive director of research at Kingston Securities Ltd. “For AI concept stocks, short-term profit-taking is pretty normal.”

Alibaba trimmed gains in overnight trading Thursday upon confirmation that Apple Inc. is working with the e-commerce pioneer to roll out AI features in China — an event that had driven the stock in recent sessions.