Chinese ADRs fell in morning trading on Wednesday, relinquishing earlier gains fuelled by the planned resumption of some Nvidia chip sales to China, as concerns lingered over US-China tensions.

YINN fell 3%; Baidu fell 7%; NIO fell 5%; XPeng, Alibaba, and JD.com fell 2%; PDD Holdings and NetEase fell 1%.

On Tuesday, US President Donald Trump lauded a new trade deal signed with Indonesia, while adding that the US would be fighting China “in a very friendly fashion”, raising fresh concerns over the lingering trade war between the two world’s biggest economies.

Morgan Stanley economists said that they expect the US tariff rate on China to remain unchanged at 30 per cent, adding that the recent escalation of US tariffs on other economies was likely to “further dampen global trade momentum”.