Meanwhile, he said, Chinese stocks look attractive even after their recent rally, given DeepSeek’s artificial-intelligence technology breakthrough, the government’s support for the tech sector and still-cheap valuations.
Citigroup Inc downgraded US equities to neutral from overweight while upgrading China to overweight, saying that US exceptionalism is at least on pause.
The US investment bank had been overweight American stocks since October 2023, but the hiatus in their ability to outperform has become more obvious, Dirk Willer, the firm’s global head of macro research and asset allocation, wrote in a note.
