The stock market is related to many aspects. When judging the market, you cannot simply rely on a certain point to make a judgment. It is necessary to make a judgment based on various aspects of the news. These news include whether people’s willingness to invest in stocks is high, the external market, the current economic market, and the status of various industries. Development status, etc., these are all things to pay attention to.
In the first three quarters of 2025, Chinese/Hong Kong stock markets rose by approximately 40%, but performance in the fourth quarter was suppressed due to continued uncertainty surrounding US-China trade and profit-taking by investors. Furthermore, in developed markets (DM), particularly the US, the generally rising prices of risk assets under the “Goldilocks” economic climate have led to a widening discount of Chinese/Hong Kong and AxJ stock markets relative to DM stocks (currently 35% and 30%, respectively). As the negative impact of tariffs gradually subsides, DBS Group’s expected valuation discount is expected to narrow significantly. Now is a good time for investors to reassess their underweight allocations to China/Hong Kong and AxJ equities, in order to capitalize on changes in capital flows and improved market sentiment in the coming months.