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Citi: Downgrade US stocks to neutral, upgrade China stocks to overweight

Citi: Downgrade US stocks to neutral, upgrade China stocks to overweight

CointimeCointime2025/03/11 03:01
By:Cointime

Citigroup's strategist has downgraded the rating of the U.S. stock market from overweight to neutral, while upgrading the rating of the Chinese stock market to overweight, citing that "the U.S. exceptionalism has at least been suspended."

Citi Bank's global head of macro research and asset allocation, Dek Willey, stated that Citi has been overweight on U.S. stocks since October 2023, but the ability of U.S. stocks to outperform the broader market has clearly stalled. He expects more negative U.S. economic data to emerge in the coming months, and this neutral view is based on a three to six month timeframe.

At the same time, Citi believes that the Chinese stock market remains attractive, driven by breakthroughs in DeepSeek artificial intelligence technology, government support for the technology industry, and low valuations, even after a recent rebound. So far this year, the S&P 500 index has fallen by 4.5%, while the Chinese stock index listed in Hong Kong has surged by 20%, becoming one of the best performing indices in 2025.

Goldman Sachs also pointed out in its latest research report that if policy implementation and gradual improvement in earnings materialize, there is still upside potential for the Chinese stock market. Goldman estimates that if global mutual funds increase their allocation to Chinese stocks by 1 percentage point, the market could see a net inflow of $8 billion.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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