China's Assets are quietly rebounding.
Overnight, $NASDAQ Golden Dragon China (.HXC.US)$ In the closing hours, it surged strongly to close up 1.69%. Notably, this index has accumulated over an 11% increase in the last 10 trading days.
From the trend of China Concept Stocks, $TAL Education (TAL.US)$ it has risen over 38% in the last 10 trading days. $Futu Holdings Ltd (FUTU.US)$ Increased by nearly 33%, $XPeng (XPEV.US)$ Increased by nearly 28%, $JD.com (JD.US)$ Increased by 23%, $Alibaba (BABA.US)$ over 19% increase, $Baidu (BIDU.US)$ Increased by over 17%.
It is worth noting that Alibaba surged nearly 7% overnight. On the news front, the Tongyi Qianwen Qwen 2.5-Max ultra-large-scale MoE model has been released, claiming to outperform competitors such as Deepseek V3.
How do Institutions view the market outlook?
The strategy report on the Chinese stock market released by JPMorgan on January 26 in Eastern Standard Time indicated that the initial situation of US-China tariff tensions was better than expected, and this wave of rebound still has room to grow.
In addition, some analysts stated that the recent US-China interest rate differential has declined from a high level, effectively easing the pressure on the Renminbi exchange rates. This change has greatly enhanced the attractiveness of Renminbi Assets, leading international funds to significantly increase their willingness to allocate to Chinese Assets. The warming expectation of policy easing has also improved the attractiveness of Chinese Assets.
Previously, Wu Wanjie, an investment strategist at Blackrock in Greater China, stated that Blackrock holds a tactical 'overweight' view on Chinese Stocks. Nie Yixiang, co-head of investment at Fidelity Fund Management (China) Co., Ltd., indicated that overseas funds are expected to flow back into the Chinese market by 2025, increasing allocation to core Chinese Assets.
CITIC SEC recently pointed out that the earnings forecast for the Hong Kong Large Cap Index in 2025 has been raised, and the attractiveness of Hong Kong stocks in terms of cost-effectiveness continues to improve. After the Spring Festival, as market policy expectations are renewed ahead of the Two Sessions, Hong Kong stocks are expected to usher in a new round of valuation recovery. In addition, the significant symbols of Hong Kong stocks will soon begin disclosing annual reports from the end of February, and considering the recent upward revision of earnings expectations, this will also support the fundamentals.
Moreover, the explosive popularity of DeepSeek represents the rise of China's AI large model technology and its influence in the Global market.
The manager of the E Fund Artificial Intelligence ETF, Gao Zhe, recently stated that the success of DeepSeek indicates that our country is not inferior to overseas in the fields of model development and application deepening. In fact, it is not just DeepSeek; applications like text-to-video and text-to-large models in our country are often ranked highly on overseas app charts. The popularity of DeepSeek reflects the ongoing deepening of edge AI, which has led to positive changes in investment focuses for the AI industry in 2025. The artificial intelligence industry is likely to enter a flourishing and prosperous investment year, while the development of the application side deserves more attention.
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