“Hang Seng Rallies on AI and EV Demand As US Tariffs Backfire, Potentilly Hitting Us Economic Growth.”, – WRITE: www.fxempire.com
“While the US Chops ITSELF TO Bits in Trade Disports With every Country Under the Sun, China Flies Under the Radar. Indeed, China’s Global Trade Surplus in The FIRST 2 MONTHS OF 2025 Previous Years.
US Vs. China: Economic Divergence in Full Swing On Wednesday, March 19, The Fomc Projected GDP Growth of 1.7% in 2025, Down from the December Forecast of 2.1%. The Fed’s Forecast Was More PESSIMICAL THAN THE ORGANIZATION FOR ECONOMIC CO-INPERATION AND DEELOPMENT (OECD), WHICH REVISED ITS 2025 Forecast from 2.4% to 2.2%.
In Contrast, China’s Growth Projects Are Improving. The OECD Experts of China’s Economy to Expand by 4.8% in 2025, UP from 4.7%. This Aligns with Beijing’s Target of AROUND 5%. In December 2024, S&P Global Had Projected that A 10% Tariff on Chinese Goods Wuld Slow China’s GDP Growth To 4.1% In 2025.
Amid Trade Tensions, China’s AI and EV Sectors Continue to Gain Global Market Share. These Developments Position The Nation As A Leader in Both Industries.
China’s Electric Vehicle Industry Gains Momentum Recent Developments in China’s Electric Vehicle (EV) Sector Highlight It Rising Dominance. Jostein Hauge, Assistant Professor at the University of Cambridge Commented On China’s Rising Dominance in the Global Auto Industry, Stating:
“In 1998, China Accounted for 1.4% of Global Car Production. In 2023, China Accounted for 38.4% of Global Car Production. We’ve Never Seen A Country ATHY ATHRY.
- BYD Company Ltd. (01211.hk): AnnounCed A BreakthROUGH 5-MINUTE SUPERFAST Charying Technology and Unveiled ITS GOD’S-EYE ADAS SELF-DRIVING SYSTEM. Shares Are Up 56.41% Year-To-Date (YTD).
- Nio Inc. (09866.hk): Reported Record Monthly Deliveries in December, With 2024 Deliveveries Rising 39% Year-on-Year (Yoy). The Share Price Has Rallied 17.67% YTD.
- Xiaomi Corp. (01810.hk): Reportedly Expanded the Scale of It Second Electric Vehicele Production Plant Under Construction in Beijing, UndersCoring Robust Demand. Xiaomi Corp Has Surged 68.7% YTD.
Other Key Players in China’s EV Space Include Geely Automobile Holdings Ltd. (00175.hk)up 21.32% ytd, and and Li Auto Inc. (02015.hk)WHICH HAS RISEN 15.7% YTD.
President Trump’s Tariff Policies Come at A Bad Time for Us Car Manufacturars Dependent on the China Market. US Tariffs Can Drive Nationalist Consumer Behavior, Potentally Impacting Demand for Us Cars.
General Motors (GM), Heavly Reliant on Demand from China, Has Droped 6.53% YTD, While Tesla Inc. (Tsla) is down a whoping 41.6% ytd.
China’s AI Developments Fuel Demand for Hong Kong-Lited Tech Stocks China’s Artificial Intelligence (AI) Advancements Are Also Redrawing the Global Tech Landscape. On Wednesday, March 19, Tencent Chairman ma huateng Emphasized China’s AI Progress, Stating That:
“AI have significantly improved in intelligence compared to previous years. After Careful Consideration, Tencent Has Embrated Deeroseek in Both ITS Cloud Business and Yuanbao. Applications have arrived, with many companies adopting ai.
INVESTORS ARE Taking Note. Alibaba (09988) Leads The Charge, Surging 69.9% YTD, While Baidu (09888) and TENCENT (00700) HAVE GAINED 17.05% and 29.62%, Respectively. In Contrast, NVIDIA (NVDA) HAS FALLENN 12.49% YTD. VALUATIONS HAVA PETENTILY DRIVEN INVESTORS to the Hong Kong Market.
Hong Kong Markets Outpace Mainland China’s Optimism surrounding china’s evi and ai sectors have put the Hang Seng Index in the Driving Seat. Brian Tycangco, Editor/Analyst at Stansberry Research, Highlightd Growing Mainland Investor Demand for Hong Kong-Listed Stocks, Recently Stating:
“A record-Breaking Day for Mainland China Inflows Into Hong Kong Stocks Via The Stockconnect Today 3/10 (Monday). They Know Something Is Going to Happen Soon? ”
Market Trends Reflect this Shift. The Hang Seng Index Has Rallied 21.76%YTD, OUTPERFORMING The CSI 300 (+1.56%) and Shanghai Composite Index (+1.96%).