Chinese ADRs dropped on Friday as traders remained wary of the rapid gains in recent weeks. YINN down 6.8%; NIO down more than 6% after earnings; PDD down 5.6%; JD.com, Alibaba down about 2%.

A Wall Street analyst issued a cautious note on Chinese stocks last night after a huge year-to-date rally, which may have encouraged some profit-taking.

China's central bank held rates steady, which may have been a disappointment. Meanwhile, analysts at Bank of America cautioned that a correction could be coming for Chinese stocks.

Nio Inc. flagged first-quarter results likely to disappoint market watchers after finishing 2024 on a weak note.

The Chinese electric vehicle maker now expects to deliver only as many as 43,000 cars in the three months that will end March 31 and report revenue of as much as 12.9 billion yuan ($1.8 billion), according to a statement Friday. That’s short of the around 65,000 units and 17.8 billion yuan the market was looking for.

Nio Chief Financial Officer Stanley Qu pledged to “sharpen our focus on enhancing profitability by driving cost reductions through technological advancements.”

PDD Holdings, which operates Pinduoduo and Temu, missed market estimates for quarterly revenue on Thursday, as demand remained weak in its Chinese e-commerce business despite deep discounts and government stimulus to boost spending.

The company reported revenue of 110.61 billion yuan ($15.3 billion) for the three months ended December 31, compared with analysts' average estimate of 115.38 billion yuan according to data compiled by LSEG.