TechFlow news — On March 11, according to Jinshi News, Citigroup strategists have downgraded U.S. equities from overweight to neutral, while upgrading Chinese equities to overweight, citing that "American exceptionalism has at least been put on pause."
Dirk Willer, global head of Citi's macro research and asset allocation, said the bank had maintained an overweight position in U.S. stocks since October 2023, but the market's outperformance has clearly stalled. He expects more negative U.S. economic data in the coming months, with this neutral stance based on a three- to six-month time horizon.
Meanwhile, Citi sees continued appeal in Chinese equities, driven by DeepSeek's AI technological breakthroughs, government support for the tech sector, and low valuations—even after the recent rally. So far this year, the S&P 500 has fallen 4.5%, while Hong Kong-listed Chinese stocks have surged 20%, making them one of the best-performing indices in 2025.
Goldman Sachs also noted in its latest report that if policy implementation and earnings improvements materialize gradually, upside potential for Chinese equities remains promising. The firm estimates that if global mutual funds increase their allocation to Chinese stocks by one percentage point, it could bring about $8 billion in net buying.
