Chinese ADRs rallied in premarket trading Tuesday. PDD Holdings rose 2.7%; Trip.com rose 10%; Li Auto and XPeng rose over 3%; NetEase rose 2%; JD.com and NIO rose over 1%; Alibaba rose 0.8%.

The nearly 29% drop in shares of Chinese online retailer PDD Holdings is "too much of a correction," according to Shaun Rein, founder and managing director of the China Market Research Group.

Speaking to CNBC ’ s "Street Signs Asia," Rein said the "panic was overblown last night," and that this would be a good opportunity for investors to buy into the stock.

Trip.com reported second quarter EPS of ¥ 7.25, ¥ 2.02 better than the analyst estimate of ¥ 5.23. Revenue for the quarter came in at ¥ 12.79B versus the consensus estimate of ¥ 12.76B.