On Tuesday, the Nasdaq Golden Dragon China Index plummeted 2.69%, with popular Chinese ADRs declining broadly. Fangdd (DUO.US) fell over 5%, while Alibaba (BABA.US), XPeng Motors (XPEV.US), and Li Auto (LI.US) dropped over 3%. TAL Education (TAL.US) declined over 2%. Additionally, the Hang Seng Index fell 1.73% during the session, and the Shanghai Composite Index dropped 0.62%.

Analysts point out that Chinese markets declined today primarily due to escalating China-US trade tensions. Orient Securities believes that the impact of this round of trade conflicts is relatively weaker than expected. However, there remains potential for continued volatility in the future, which may delay the timing of recovery and upward momentum, though it won't change the overall upward trend.