Chinese ADRs slid in premarket trading amid concern about global financial market stability, after the US lost its top-notch sovereign credit rating and China reported mixed post-tariff economic data.

Meanwhile, the White House and congressional officials have been scrutinizing Apple's plan to strike a deal with Alibaba to make the Chinese company's AI available on iPhones in China, The New York Times reported on Saturday.

Pony AI fell 5%; WeRide and XPeng fell 4%; Bilibili, NIO, and Li Auto fell 3%; Alibaba, Baidu, and iQiyi fell 1%; NetEase fell 0.8%; JD.com fell 0.6%; PDD Holdings fell 0.4%.

Moody’s Ratings stripped the US government of its top credit rating from Aaa to Aa1 on Friday, citing the administration’s failure to stop a rising tide of debt. The rating agency joined Fitch Ratings and S&P Global Ratings in lowering the top rating of the world’s biggest economy. The one-notch cut comes more than a year after Moody’s changed its outlook on the US rating to negative.

The downgrade is expected to affect US assets and global financial markets, reviving the narrative of “sell America” that prevailed when the US unveiled its so-called reciprocal tariffs last month.

Retail sales in China increased 5.1% year on year in April, according to official data on Monday. That compared with a consensus estimate of 5.8% growth in a Bloomberg poll of economists. Fixed-asset investments rose 4% in the first four months, falling short of the 4.2% growth projection. Industrial production was a bright spot, growing 6.1% last month to exceed the estimate of a 5.7% increase.