Chinese stocks thrive while U.S. markets struggle

Chinese stocks have performed well in 2025, with the Hang Seng index rising 20.70%. This growth is driven by strong overseas investment and support from the Chinese government, which is implementing strategies to boost domestic demand amid U.S. tariffs. In contrast, U.S. stock markets are struggling, with the S&P 500 down nearly 8% since January. Concerns over President Trump's trade policies and their impact on the U.S. economy have led to investor dissatisfaction and a shift in focus towards Chinese equities. Brokerage firms like Citigroup and Goldman Sachs are becoming more optimistic about Chinese stocks, downgrading U.S. equities. They believe that the appeal of U.S. stocks is diminishing due to uncertainty surrounding Trump's economic policies.