Graphs Worth 1000 Words: U.S Stocks Lose Steam as China Tech Takes Lead

A Graph is worth a 1,000 words—let's take a look at some intriguing charts!

The unstoppable rally in U.S. stocks seems to be losing steam this year. The three major U.S. indices have posted only single-digit gains, underperforming both Chinese and European assets.

Adding to concerns, insider selling in U.S. stocks has been rising steadily, signaling that corporate executives are cashing out aggressively.

The 10 largest U.S. stock ETFs have recently seen a sharp outflow of funds, indicating that investors may be rotating out of U.S. equities.

Meanwhile, Chinese internet ETFs listed in the U.S. have recorded strong inflows. Led by Alibaba, Chinese tech stocks are gaining traction and may soon take over the leadership role previously held by the Magnificent 7.

Macro Outlook: Inflation Fears & Fed Policy

On the macro front, long-term U.S. inflation expectations for the next 5–10 years have climbed to a 30-year high, driven by Trump's aggressive tariff policies. The hotter-than-expected January CPI report has also cast doubt on Fed rate cuts this year.

Signs of Recovery in China's Real Estate Market

China's real estate sector is showing early signs of stabilization and recovery. Developers are once again bidding aggressively for land, reflecting a return of confidence in the property market.

According to China Index Academy, 37% of land transactions worth over ¥1 billion(approximate $0.138 Bln) this year were sold at premiums exceeding 20%. This marks a significant rebound from just 14% in 2024 and under 5% in 2023. For comparison, during the real estate boom of 2017, this figure surpassed 60%!

Notably, over 60% of developers purchasing land at premiums are state-backed enterprises (SOBs). With major private developers like Evergrande and Country Garden facing severe financial distress, SOBs have stepped in decisively to stabilize market confidence. Since the property downturn began in 2021, SOBs have consistently accounted for more than 50% of premium land acquisitions.