BUZZ-China tech ADRs rebound; UBS says sector remains attractive

U.S.-listed shares of Chinese tech companies regain ground after steep losses in the previous session

Concerns about U.S. investment curbs on China saw ADRs tracking stocks fall on Monday

Alibaba BABA.N up 4%; stock tumbled over 10% in its worst day since Oct. 2022 on Monday, Hong-Kong listed shares 9988.HK fell over 3%

Alibaba to release an open-source version of its video and image-generating AI model

But a report late Monday that the U.S. is considering tightening chip exports to China weighed on Chinese listings during Asian trading hours

UBS says still has "attractive" view on China internet stocks given improving fundamentals, shareholder returns and macro policy support

"We think China's internet sector should outperform amid early signs of success in AI innovation" - UBS

But brokerage says that U.S.-China tensions and China's economic concerns are likely to weigh on sector in the near term

JD.com Inc JD.O and PDD Holdings PDD.O rise 2% and 1.2% respectively

Gaming stock Bilibili Inc BILI.O up 2.5%

Search engine giant Baidu Inc BIDU.O gains 0.3%; co purchases JOYY's YY.O China live-streaming business for about $2.1 billion

IShares MSCI China ETF MCHI.O up 1%, KraneShares CSI China Internet ETF KWEB.K gains 0.5% and Roundhill China Dragons ETF DRAG.K up 2.2%

KWEB ETF up over 17% YTD, Hang Seng Technology Index .HSTECH up over 27% YTD versus a 2.2% loss in U.S. technology stocks .SPLRCT