China ADRs and ETFs continued to rebound in overnight trading. Li Auto up 19% after unveiling the new i8 electric SUV; XPeng up 9%; Alibaba, YINN, KE Holdings up 5%; NIO up 4%.

Mainland traders came to the rescue, helping to trim losses driven by concern over US President Donald Trump’s move to limit investments between the world’s two largest economies.

Mainland investors are doubling down bets on China’s artificial intelligence as a priority for President Xi Jinping in the tech rivalry with the US.

“I think this is one of those times when it’s an obvious time to buy stocks without even having to do calculations,” said Zhuang Jiapeng, a fund manager at Shenzhen JM Capital Co. “This is not the time to let go of positions in China tech.”

Trump’s latest directive renewed geopolitical risks that financial markets had largely downplayed this year. Chinese internet megacaps were on a tear in recent weeks as DeepSeek gave investors confidence on the industry’s growth potential.

Monday’s dip likely gave mainland investors an opportunity to bolster positions as they wager on China’s ability to achieve tech self sufficiency. A report that Trump’s team was looking to add more restrictions on Chinese chipmakers added to that conviction.