In the context of an increasingly complex global political and economic environment, fluctuations in overseas policies have posed new challenges to China's capital markets. However, with the continuous implementation of policies and the rise of structural industries, investors are expected to seize more quality investment opportunities in the upcoming 2025.

1. U.S. Equities

● Potential Opportunities

Technology Sector Leading Growth: Artificial intelligence (AI) and big data technologies will continue to drive the technology sector. AI-related semiconductor companies (e.g., NVIDIA) and cloud computing service providers (e.g., Microsoft) are expected to attract continued capital inflows. Additionally, the electric vehicle industry (e.g., Tesla) will maintain strong growth momentum due to technological innovation and global policy support.

Long-Term Resilience of the Healthcare Sector: The aging population and innovations in biotechnology will drive demand in the healthcare industry. Fields like gene therapy and personalized medicine have significant growth potential.

Consumer Sector Recovery: As inflationary pressures gradually ease, discretionary goods and high-end brands may rebound, especially in an improving economic environment.

● Potential Risks

Geopolitical Uncertainty: Technological and trade competition between the U.S. and China may affect global capital markets, potentially impacting the valuations of some U.S. tech companies.

Impact of Monetary Policy: The Federal Reserve's policy trajectory in 2025 remains uncertain. If rate cuts are slower than market expectations, it could put pressure on the stock market.

Economic Growth Slowdown Risk: If the U.S. economy falls into recession, corporate earnings may be squeezed, particularly in high-valuation sectors such as technology.

2. U.S. Treasuries

● Potential Opportunities

Attractive Yields: The Federal Reserve may gradually lower interest rates in 2025. Although bond yields may decline, bond prices are expected to rise, especially for long-term Treasuries (10 years or more).

Sustained Safe-Haven Demand: In the face of global economic and geopolitical uncertainties, U.S. Treasuries will remain the preferred safe-haven asset for international capital, attracting substantial inflows.

Support from the Strength of the Dollar: As the U.S. dollar remains the global reserve currency, its strength will continue to bolster the liquidity and attractiveness of U.S. Treasuries.

● Potential Risks

Fiscal Deficit Pressure: The U.S.’s growing fiscal deficit could raise concerns about its debt repayment ability, potentially putting selling pressure on long-term Treasuries.

Possibility of Inflation Resurgence: If energy prices or other factors cause inflation expectations to rise again, the market may demand higher yields on bonds.

Global Competitive Investment Appeal: As returns from other countries' assets (e.g., Europe or emerging markets) increase, U.S. Treasuries may face relatively reduced appeal.

Comprehensive Risks

Geopolitical and Regional Conflicts: Geopolitical uncertainties, such as U.S.-China competition and the Russia-Ukraine conflict, could continue to impact global capital flows and market sentiment.

Global Economic Growth Slowdown: The International Monetary Fund (IMF) predicts that global economic recovery in 2025 may remain sluggish, potentially suppressing overall market performance.

Interest Rate and Policy Mismatch: Divergent monetary policy directions across countries may lead to imbalances in capital flows. For example, if the Federal Reserve cuts rates while other central banks tighten policies, it could disrupt market stability.

Conclusion

Overall, 2025 presents significant investment opportunities in international markets, but accompanying risks also warrant careful attention. Investors should closely monitor macroeconomic changes and regional policy developments to better capture opportunities and mitigate potential risks.

How to buy stocks on uSMART

Log in to the uSMART APP, click "Search" in the top-right corner, enter stock codes and select a stock to view details. To trade, click "Trade" in the bottom-right, choose "Buy/Sell," fill in the details, and submit your order.The image guide is as follows: