PDD Holdings shares rebounded 1.7% in premarket trading Tuesday after plunging 28.5% on Monday.

China's PDD Holdings missed market estimates for quarterly revenue on Monday, and downbeat comments from executives about China's domestic e-commerce competition and the firm's global outlook sent its shares down more than 28%.

The biggest one-day share fall for PDD since it listed in the U.S. in 2018 wiped out nearly $55 billion in market capitalisation. The e-commerce retailer operates discount-focused platforms Pinduoduo in China and Temu for the international market.

" ( We ) are seeing many new challenges ahead, from changing consumer demand, intensifying competition and uncertainties in the global environment," Co-Chief Executive Chen Lei said on an earnings call with analysts after the results.

"We will enter a new phase of high-quality development that calls for increased investments and our profitability will be affected as a result," he added.

"Looking ahead, revenue growth will inevitably face pressure due to intensified competition and external challenges," said PDD's Vice President of Finance Jun Liu.