Update Time：2025/02/27
Tighter restrictions
US consumer confidence plunges, dragging down stocks
Hot Topics:
1.Trump Intensifies Restrictions on China
On February 21, the White House released a presidential memorandum on the "America First" investment policy, imposing strict restrictions on investments related to China. These restrictions target high-tech industries, information networks, and infrastructure, marking the toughest U.S. investment policy against China to date.
The memorandum outlines three key measures:
Restricting Chinese investment in U.S. high-tech industries, particularly AI, semiconductors, and cloud computing.
Blocking Chinese companies from raising funds in U.S. stock markets, limiting foreign capital inflows into Chinese firms.
Tightening regulations on U.S. investors to prevent their capital from indirectly supporting China's tech sector.
The U.S. is not only restricting Chinese investment in America but also aiming to cut U.S. capital from flowing into key Chinese industries. As a result, both the Hong Kong and mainland Chinese stock markets saw short-term outflows and adjustments.
2.US Consumer Confidence Plummets
On Tuesday, The Conference Board released a disappointing report: the U.S. consumer confidence index for February plunged to 98.3, dropping 7 points from January and hitting its lowest level since mid-2024. Even worse, this marks the second consecutive month of decline, with the largest monthly drop in over two years, signaling a sharp downturn in consumer sentiment.
Economists at LPL Financial warn that consumer behavior is likely to shift in the short term, as people fear rising prices and economic uncertainty.
According to Stephanie from The Conference Board, Americans are becoming increasingly pessimistic about the job market and company outlooks. Concerns about personal income stability are rising, with the percentage of people worried about job security reaching a 10-month high. Meanwhile, the percentage of those who believe job opportunities will shrink jumped from 21% in January to 25.9% in February.
*Source: Bloomberg
*内容来源：彭博
Update Time：2025/02/27
Update Time：2025/02/27
Reassessing China’s assets after Deepseek’s surge
The White House's newly announced "America First" investment policy has caused some short-term sentiment fluctuations in Greater China assets. The Hang Seng Tech Index has already surged around 38% from its January low, leading to some profit-taking pressure. However, Western institutional investors still hold relatively low positions in Greater China assets, limiting the overall market impact of this news. At the same time, Chinese tech stocks remain attractively valued with solid earnings potential.
Meanwhile, both short- and long-term U.S. inflation expectations have hit new highs, while consumer confidence has dropped significantly. With ongoing uncertainty surrounding rate cuts, tariffs, and political risks, concerns about a potential stagflation scenario in U.S. stocks are growing. Additionally, Wall Street is bracing for potential volatility following Nvidia’s earnings report this week. If risk appetite weakens further, a short-term rebound may be difficult.
Source: Tiger Asset Management
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