Along with the late Tuesday surge turning positive, Hong Kong and A-shares once again demonstrated unique resilience against the backdrop of the "Trump recession trade" in the global market.

Because of this, many investors hastily took screenshots from their stock software before the opening of the European and American markets on Tuesday, capturing the symbolic scene of "the global stock market only A-shares rising."

In fact, this round of the historical trend of "the East rising and the West declining" is not a sudden reversal in recent days. Under the backdrop of extensive chaos in domestic and foreign policies caused by the Trump administration in the USA, the continuous breakthroughs in China's Technology sector in AI and Siasun Robot&Automation since the beginning of the year have already made global markets reevaluate their long-standing biases towards the valuations of Chinese assets.

Recently, the returns and resilience displayed by the Chinese market have also prompted more foreign investment banks to express their willingness to further bullishly view Chinese assets.

UBS Group: Foreign capital is gradually increasing their shareholding.

Regarding the recent strong performance of the Hong Kong stock market,房东明, the head of China at UBS Group's Global Financial Markets division, stated on Tuesday that although there is a possibility of consolidation in Hong Kong stocks given the uncertainty of the broader environment, from the perspectives of valuation, liquidity, and institutional Hold Positions, Hong Kong stocks are still expected to outperform globally.

The landlord Ming pointed out that overseas investors have become more actively involved in the Chinese stock market over the past month, and large global funds are still under evaluation. Overall, foreign capital is still in the process of gradually increasing their positions. The phenomenon currently observed is that the funds flowing into Chinese assets mainly come from Emerging Markets, such as the transfer from the stock markets of India and South Korea to Hong Kong stocks.

He also stated that the economic targets mentioned in China's two sessions meet expectations and are more optimistic and pragmatic. DeepSeek's contribution to the entire "Big Technology" and Industry Chain in China will encourage investors to increase their attention on A-shares and H-shares. The landlord Ming believes that the performance of A-shares has been relatively stable since the beginning of the year, with stronger growth momentum in the future.

Citigroup: Upgrading China stock rating and downgrading US stock rating.

As the latest flagbearer of "The East Rises While the West Falls", a report by Citigroup's global macro research and asset allocation head, Dirk Willer, directly gives a divergent outlook for the stock markets of China and the USA—downgrading the US stock market rating to neutral and upgrading the China stock market rating to Shareholding. This is also the research report that Chinese investors are most concerned about on Tuesday.

Citigroup analysts stated that for the next few months, the "news flow" of the US economy may lag behind other regions of the world, with expectations of more negative data for the US economy in the future. It is feared that US stocks will only have a chance of performance after the AI theme regains attention.

Regarding Chinese assets, Citigroup believes that even after the recent rise in the Chinese stock market, they still appear attractive. This is thanks to DeepSeek's breakthroughs in the AI field, government support for the Technology industry, and still low valuations.

It is worth mentioning that Citigroup has been recommending an overweight position in US stocks since October 2023. However, Willer's team warned last November that the "American exceptionalism" trade may face risks due to the end of the Ukraine war.

As a background, HSBC also downgraded US stocks' rating this week. Meanwhile, JPMorgan and Goldman Sachs have also raised expectations for the US economy falling into recession due to the uncertainty of Trump's policies.

Emmer Capital: The preferred choice for capital inflow into Asia is China's Internet and Consumer Stocks.

Manishi Raychaudhuri, CEO of Emmer Capital and former Asia equity strategist for Société Générale and UBS Group, said on Tuesday that as capital flows into Asia, undervalued and still underweighted Chinese Assets will remain the preferred choice. Therefore, at the top of his stock selection list are still Chinese listed in Hong Kong, large Internet companies, and some Consumer brands.

Raychaudhuri also stated that even after some degree of correction of the seven major tech companies in the USA, he remains more Bullish on Chinese Technology stocks. He believes that Chinese Technology stocks are about to start showcasing the monetization prospects of China's technological capabilities, and that China's technology can significantly reduce the costs of the so-called "AI application layer." He has no doubt that American Technology stocks, particularly companies with monopolistic positions in the "selling shovels" field, can recover, but the current market trend is clearly Bullish for Chinese capital.

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Editor/lambor