Tonight, amid a narrow fluctuation in the US stock market, Chinese assets have collectively strengthened, as of the time of writing, $NASDAQ Golden Dragon China (.HXC.US)$ rising over 3% to reach a new high not seen in nearly two years, $Direxion Daily CSI China Internet Index Bull 2x Shares ETF (CWEB.US)$ at one point increasing by more than 5%, $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ and experiencing a significant rise of over 4%, with China Concept Stocks all rising.

Analysts suggest that with a series of Bullish policies being introduced, foreign investors' preference for China's Assets may gradually Diffuse from Technology Stocks to the Consumer Sector. After a previous reassessment of the value of China's Technology Stocks, the Consumer Sector is likely to become the next focus for foreign investors. Goldman Sachs believes that Chinese consumer sentiment has stabilized, and the profitability cycle may see a revaluation, recommending that investors focus on specific sub-sectors.

The recent severe fluctuations in the US stock market are causing high tension on Wall Street. In this regard, US Treasury Secretary Yellen believes that market corrections are healthy and normal. He also stated that there is no concern about the recent pullback in the US stock market.

Chinese Assets are strong across the board.

On the evening of March 17, Beijing time, after the US stock market opened, Chinese Assets surged across the board, and the Nasdaq China Golden Dragon Index significantly outperformed the overall US stock market,$NASDAQ Golden Dragon China (.HXC.US)$ rising over 3% to reach a new high not seen in nearly two years, $Direxion Daily CSI China Internet Index Bull 2x Shares ETF (CWEB.US)$ at one point increasing by more than 5%, $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ and experiencing a significant rise of over 4%, with China Concept Stocks all rising.

$FTSE China A50 Index Futures(MAR5) (CNmain.SG)$ 、 $HSI Futures Current Contract (HSIcurrent.HK)$ Straight climb, with increases of 0.6% and 1.62% respectively.

China Concept Stocks are rising across the board,$Niu Technologies (NIU.US)$A significant increase of over 16%,$MINISO (MNSO.US)$、$Baidu (BIDU.US)$、$WeRide (WRD.US)$、 $TAL Education (TAL.US)$ Increased by over 4%.$Alibaba (BABA.US)$、$iQIYI (IQ.US)$、$Full Truck Alliance (YMM.US)$、 $Trip.com (TCOM.US)$ Rose over 3%,$PDD Holdings (PDD.US)$、$Tencent Music (TME.US)$、$KE Holdings (BEKE.US)$、$Vipshop (VIPS.US)$、$NIO Inc (NIO.US)$Wait for the increase of over 2%.

This afternoon, a press conference was held by the State Council Information Office, where Li Chunlin, Deputy Director of the National Development and Reform Commission, along with relevant officials from the Ministry of Finance, Ministry of Human Resources and Social Security, Ministry of Commerce, People's Bank of China, and State Administration for Market Regulation, introduced measures to boost consumption. The National Development and Reform Commission stated that multiple departments are actively planning relevant policies to stimulate consumption. The People's Bank of China mentioned the study of new structural monetary policy tools to increase low-cost financial support in key consumption areas.

"Consumption is expected to become the second main line after AI+ ." Zhang Xia, Chief Strategy Analyst at China Merchants, believes that from a macroeconomic perspective, achieving a GDP growth target of about 5% by 2025 largely relies on an increase in consumption growth. Furthermore, the general fiscal expenditure growth in the government's budget for 2025 has significantly increased, which is expected to enhance consumption growth. From a funding perspective, foreign capital's preference for Chinese assets may gradually diffuse from technology stocks to the consumption sector this year. Some consumption-related industries have already seen their valuations compressed to historical lows; once more specific measures are implemented, the prosperity in certain sub-sectors is likely to improve marginally. Following the earlier value reassessment of Chinese technology stocks, the consumer sector may well become the next focus for foreign investors.

Goldman Sachs believes that China's consumer sentiment has stabilized, and the profit cycle may undergo a valuation reshaping, suggesting that investors focus on specific sub-sectors. For investors, this means there are potential investment opportunities within the Chinese consumer sector, particularly in sub-markets that have reasonable valuations and growth potential.

The overall U.S. stock market is experiencing narrow fluctuations, with the three major indexes showing mixed results: the Dow rose by 0.34%, the Nasdaq fell by 0.27%, and the S&P 500 Index increased by 0.2%.

Among them, the Quantum Computing concept stocks surged across the board. $Arqit Quantum (ARQQ.US)$ Surged over 26%, $Quantum (QMCO.US)$ Surged over 16%, $Quantum Computing (QUBT.US)$ Increased by over 13%, $D-Wave Quantum (QBTS.US)$ Increased by over 6%.

$Intel (INTC.US)$ Once surged over 8%, in terms of news, Intel's new CEO Pat Gelsinger plans to comprehensively reform the chip design and manufacturing business, intends to restart AI work, and produce chips at an annual pace. At the same time, Gelsinger also plans further layoffs to reduce bloating.

In terms of macro data, the latest figures released by the U.S. Department of Commerce show that U.S. retail sales in February rose by 0.2% month-on-month, below the expected 0.6%, and the previous value was significantly revised from -0.9% to -1.2%, marking the largest decline since July 2021.

The data also showed that retail sales in February, excluding automobiles, rose by 0.3% month-on-month, in line with expectations, and the previous value was revised from -0.4% to -0.6%; retail sales in February, excluding automobiles and RBOB Gasoline, rose by 0.5% month-on-month, above the expected 0.4%, and the previous value was revised from -0.5% to -0.8%.

Besenet latest statement

Regarding the recent volatility in the U.S. stock market, U.S. Treasury Secretary Besenet believes that the market correction is healthy and normal. He also stated that he is not concerned about the recent correction in the U.S. stock market.

On March 16 local time, Besenet stated in a television program: "I have been in the investment business for 35 years, and I can tell you that the correction in the U.S. stock market is healthy and normal. An unhealthy situation is a market that continues to rise, creating irrational prosperity, which ultimately leads to a financial crisis. If someone had hit the brakes in 2006 or 2007, we would not have encountered such serious problems in 2008."

Last week, the U.S. stock market experienced severe sell-offs as investors were worried about the economic impact of the Trump administration's policies on tariffs, immigration, and federal government spending cuts. With growing concerns about economic growth and declining consumer confidence, the stock market's declines further widened.

Besenet stated: "We are formulating policies to alleviate the cost of living pressure and control inflation. I believe that as these policies are gradually implemented, the people in the USA will see positive changes."

As the scope of Trump's tariff policy expands, consumers from various political factions are increasingly concerned that additional tariffs will lead to rising costs. Currently, the USA has implemented global tariffs on Steel and Aluminum, and broader tax measures will also be determined before the April 2nd deadline.

As the issues of the USA economy and the US stock market are increasingly attracting attention, the Federal Reserve's interest rate meeting this week is being closely observed by Wall Street. Earlier this month, Federal Reserve Chairman Powell emphasized that the Federal Reserve does not need to rush to cut interest rates, but he may face inquiries regarding the uncertainties and risks currently emerging.

Editor/Somer