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20 Feb 2025

"... a structural regime shift is finally happening within China's equity market..."

Morgan Stanley drops bearish China call. thru David Ingles on X

20 Feb 2025

From the @FT article, “China’s holdings of US Treasuries fall to lowest level since 2009:”

“Analysts say the change partly reflects China’s desire to diversify its foreign reserves by buying assets such as gold. But they add that Beijing is seeking to disguise the true extent of its Treasury holdings by shifting them to custodian accounts registered elsewhere.” Source: FT, Mohamed El Erian

18 Feb 2025

Xi wants some of that AI bubble cash.

Here he is shaking hands with Jack Ma after sending him in exile 4 years ago. Source: zerohedge

18 Feb 2025

Short Interest in China is now at an all-time high!

Source: Subu Trade

18 Feb 2025

"Biggest macro imbalance in the world is the chronic undervaluation of China's Yuan. "

"China's trade surplus - once you look at goods net of commodities (blue) - was the largest ever in 2024. This is why tariffs on China will keep going higher after an already large 10% tariff..." Source: Robin Brooks

18 Feb 2025

🤖After DeepSeek's release, Chinese tech stocks have surged, with Alibaba leading the way, up over 50% in just one month🚀!

The AI boom sparked by DeepSeek is prompting global investors to reassess investment opportunities in China's tech and AI sectors, particularly the AI capabilities of previously undervalued Chinese internet companies. With Alibaba collaborating with Apple to integrate AI features into the Chinese version of the iPhone and 🔵Tencent's WeChat adopting DeepSeek, the demand for AI cloud computing services in China could soon mirror the supply shortages seen in the US. It's clear that China's AI progress is catching up to the US at an accelerated pace—and costs are dropping even faster. Source: Genuine Impact

17 Feb 2025

Goldman Raises MSCI China Target as DeepSeek Improves Outlook - Bloomberg

Strategists at Goldman Sachs Group Inc. expect a blistering rally in Chinese equities to continue, as the emergence of DeepSeek sparks optimism over the country’s technological advancements. Kinger Lau and his colleagues see the MSCI China Index reaching 85 over the next 12 months, up from their previous target of 75. That indicates another 16% rise from Friday’s close. The index has already entered a bull market earlier this month. Their target for the CSI 300 Index was raised to 4,700 from 4,600.

14 Feb 2025

The success of Chinese artificial intelligence (AI) start-up DeepSeek is prompting investors to reassess the nation’s technology companies.

The Hang Seng Tech Index, whose biggest members include Tencent Holdings, Alibaba Group Holding and Xiaomi, approached a four-month high on Thursday, after rallying more than 10 per cent over the past two weeks, while the broader Hang Seng Index climbed about 6 per cent. As shown on the chart below, the valuation gap between Chinese stocks and the Mag7 remains massive. Source: Compounding Quality @finvibe

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