Chinese ADRs traded mixed to begin the week, with price action offering a discount to local shares as the rally in US markets slows down. The UBS China internet basket, UBXXCWEB, led the broad move higher, outperforming the sector with gains of 1.2%. Internet and tech giants BABA, TME, and NTES also saw solid gains, increasing by 1.5%, 3%, and 3.5% respectively.

In single stock news, PDD, the owner of Temu, reported strong top and bottom-line beats, driven primarily by cost reductions amid tariff woes and growing local competition. Despite these challenges, investors remained optimistic on the company’s growth prospects.

Meanwhile, in the property sector, Beijing officials eased home-buying rules to aid the prolonged property crisis. Shares of DUO and BEKE jumped 22% and 2.2% respectively, as investors responded positively to the government’s efforts to stabilize the market.

In Europe, stocks opened the week lower on light volumes with the UK closed. The shift lower follows last week’s short-lived rally that was spurred by hopes for more interest rate cuts from the Federal Reserve. With little activity in the market, flows were skewed towards selling side, adding to the downward pressure on stock prices.

Overall, while Chinese ADRs faced some selling pressure to begin the week, the sector remains buoyed by optimism around the country’s economic growth prospects and the ongoing recovery in US markets. As investors continue to monitor developments in these areas, they may also keep an eye on the property sector for any signs of stabilization.