"City" reduces the classification of US stocks and increases the Chinese

City Group has reduced its view of US stocks, while the classification of Chinese shares to buy is increased in a new indication of the increasing diversity in the future expectations of the two largest markets around the world. ‘City Group’ strategy, including Dirk Wheeler, head of macro -economic research and asset reservations worldwide, wrote in a memorandum of clients on March 10 that ‘US superiority will find at least temporarily over the next few months’. Experts have reduced their recommendation to US shares of purchase to a recommendation to keep the shares without modification. In a similar step, a team in ‘HSBC Holdings’ has reduced its ranking of US stocks to a recommendation to hold it, suggesting that it is currently seeing better investment opportunities elsewhere. The US economy has decreased. Wheeler and his team added that the performance of the US economy could be among the rest of the world’s economies in the coming months, which weaker US economic data can expect. They explained that their recommendation to hold US shares for a period of 3 to 6 months. In terms of Chinese shares, the city group strategy indicated that it is still attractive, even to the last height, citing the development in the technology of artificial intelligence of the company “Deep Seck”, in addition to the government’s support for the technological sector and evaluations that are still low. The decisions of ‘City Group’ come at a time when ‘Wall Street’ saw a significant decline yesterday, amid the increase in the fear that customs duties are increasing and the spending approved by US President Donald Trump could harm the US economy, which has so far retained its power to disregard the pessimists. For two consecutive years, stock market analysts have often increased their expectations for the Standard & Poor 500 index to keep up with the ongoing rise. But after less than three months since the new year has passed, many analysts have begun to reduce their optimistic expectations for 2025. The ‘Standard & Poor’s 500’ index has fallen by 4.5% since the beginning of the year, after it has been more than 20% over the past two years. Chinese stocks are making a clear difference with China, as the shares have seen a remarkable increase since the beginning of the year. The Chinese stock index listed on the Hong Kong Stock Exchange jumped by 20%, making it one of the best performance indicators in the world in 2025. It is also on the way to register the largest superiority of the ‘Standard and Poor’s 500’ index since September 2007. The risk runs as the war ends in Ukraine, despite their claim that it is still too early to take investment centers based on this possibility. They also pointed out that the time at the time was not suitable to bet on the superiority of Chinese stocks, despite the possibility of providing local economic stimuli. The contrast between the United States and China is clear when looking at the shares of technology, as the rise of an advanced artificial intelligence model of the emerging Chinese company “Deep Sick” has radically assessed the sector in China, which strengthened its investment’s attraction. In this context, an index of seven major Chinese technological enterprises jumped, including the Ali Baba Holding Group, run by Societe General, by more than 40% since the beginning of this year, while the US ‘seven major’ stock index fell by about 10%, resulting in the ‘NASDAQ 100’ index to a corrective movement. European stocks are other factors that speed up the shift of US origin, the rise of cheaper alternatives in other world regions. For example, the Germany’s plan is seen to significantly increase expenses as a turning point in the European Union policy, which increases the attraction of German assets. As a result, the German “DAX” index has risen by 14% since the beginning of this year. Although the HSBC strategies have reduced the ranking of the US stocks, they have increased the classification of European shares – with the exception of the UK – of a recommendation to sell to a recommendation to purchase, and pointed out that providing financial incentives in the eurozone may be a radical change factor in the economic scene.