Chinese Stocks Shine in Q1 With 15% Returns 🚀

Key Takeaways

• Hong Kong's Hang Seng index surged 15.3% in Q1 2025, supported by DeepSeek's impact on the tech industry and improving economic growth forecasts.
• The German DAX 40 index climbed 11.3%, with defense company Rheinmettal jumping by more than twofold over the quarter.
• U.S. large caps posted -4.6% returns amid flagging confidence amid global trade wars.

Global Equities Outperform

While U.S. equities posted two consecutive years of double-digit annual returns, this quarter is notably different amid concerns of inflation and slower GDP growth.

Amid the U.S. selloff, investors have flocked to Chinese and European stocks in Q1, driven by DeepSeek's impressive performance and a boom in planned defense spending across the bloc—set to reach as high as $840 billion.