Chinese ADRs jumped in morning trading, as investors expected Beijing’s ‘policy pivot’ to continue, with a focus on demand-side stimulus and stabilising the housing market, analyst said.

Leading the advance, search-engine giant Baidu jumped 11%, after it said its AI chip unit Kunlunxin filed a listing application with the Hong Kong stock exchange ‍on Thursday.

In terms of other companies and ETFs, Direxion Daily FTSE China Bull 3X Shares rose 10%; NetEase rose 7%; Bilibili rose 6%; iQiyi rose 5%; Alibaba, Tencent Music, and WeRide rose 4%; Trip.com, NIO, and Li Auto rose 3%; PDD Holdings and JD.com rose 2%; while XPeng fell 0.7%.

Expectations have been building that the stock rally could extend into 2026 after a high-level economic policy meeting chaired by President Xi Jinping last month signalled continued fiscal support and accommodative monetary policy in 2026.

Investors turned more optimistic on China’s markets in 2025, putting them back on the radar after the country showed resilience amid tariff friction with the US and highlighted its technological strength with the emergence of home-grown artificial intelligence start-up DeepSeek.