Chinese ADRs jumped again in morning trading on Friday, as optimism grew that China would take more steps to support the nation’s economic growth and technology innovation. YINN rose 3%; Bilibili rose 8%; XPeng and Li Auto rose 6%; iQiyi and NIO rose 5%; Alibaba rose 4%; PDD Holdings, Baidu, and NetEase rose 2%.

Traders are bullish after China set a growth target of about 5 per cent this year and promised support for technology innovation led by the application of large language models in the government report delivered to the annual legislative National People’s Congress. A pullback in US stocks has also strengthened the trend of buying Chinese technology stocks that trade at a discount to the “Magnificent Seven” stocks in the US.

The growing possibility of a recession in the US and the uncertainty over the Trump administration’s policies were forcing Chinese policymakers to take steps to counter these challenges, which was encouraging global capital to flow back into China’s riskier assets, according to Amundi Investment Institute.

Official data released on Friday showed China’s export growth slowed to 2.3 per cent in the first two months of the year from 10.7 per cent in December, indicating that Washington’s new tariffs were having an impact on reining in the biggest contribution to the nation’s growth last year.

“This may be partly due to the slowdown of export front loading,” said Zhang Zhiwei, chief economist at Pinpoint Asset Management in Hong Kong. “While the tech sector in China is booming, domestic demand is still weak as the property sector downturn has not ended. As the fiscal deficit has been raised this year, hopefully fiscal spending will pick up in the coming months and offset the potential slowdown in external demand.”