Chinese ADRs fell in premarket trading Thursday on concerns the tech bull run is overstretched without a solid backing in earnings growth, while Federal Reserve officials raised caution on future interest-rate cuts amid economic challenges.

YINN fell 2%; iQiyi fell 8%; NetEase fell 4%; XPeng fell 3%; NIO, PDD Holdings, and Bilibili fell 2%; Alibaba fell 1%.

Alibaba will report its earnings report after the market close.

Thursday’s slump clipped some of its rally this year, which was fuelled by DeepSeek’s AI model that outperformed its global peers. Goldman Sachs, UBS and Morgan Stanley raised their targets for Chinese equities for this year, while saying more economic stimulus was also needed to justify the stock rally.

“As promising as AI could be to China’s growth trajectory, we believe forceful policy stimulus is still required to address deep-rooted macro challenges and drive sustainable equity gains,” Goldman said in a report this week.

While the fundamental investment thesis for China has been improving, investors could afford to wait and “time a better entry point for a structural bull market”, strategists at BofA Securities said in a report this week, citing China’s economic struggles.

Elsewhere, minutes of the Fed’s January policy meeting released on Wednesday showed policymakers were prepared to wait before making further rate cuts, citing inflation outlook and uncertainties in economic policies, after President Donald Trump returned to the White House.

The Fed paused in January, after delivering three successive rate reductions since its September pivot in favour of monetary easing.