Chinese ADRs dipped in premarket trading as transactions slowed down and a government report showed that Chinese industrial companies posted a bigger profit decline. Direxion Daily FTSE China Bull 3X Shares fell 5%; Alibaba fell 3%; Li Auto, JD.com, Bilibili, XPeng, and Baidu fell 2%; while NIO rose 2%.

Sentiment was swinging between a deteriorating growth outlook and bets that Beijing would ramp up fiscal expansion and monetary easing next year to prop up the economy. Extending this year’s solid run in equities would require bolder stimulus measures from policymakers, particularly to arrest the persistent decline in home prices, traders said.

In the latest sign of stalled growth, profit declines for Chinese industrial companies accelerated to 13.1 per cent in November from 5.5 per cent a month earlier, the National Bureau of Statistics said on Saturday.

A day later, the Ministry of Finance said after a two-day national fiscal work conference that China would ramp up fiscal spending to spur consumer demand and shore up investment in public services next year.