The Nasdaq China Dragon Index has surged 4%, with popular Chinese stocks rallying.

The Nasdaq China Dragon Index surged 4% on Tuesday, with popular Chinese stocks rallying at the opening, with Hesai Group (HSAI.US) soaring more than 26%, Xpeng (XPEV.US) up more than 15%, Li Auto (LI.US), Bilibili (BILI.US) up more than 6%, and Alibaba (BABA.US) up nearly 5%. On the news front, today's Hong Kong and A-share markets were low open but high close despite the overnight plunge in US stocks, further reinforcing the "East rises and West falls" narrative logic. Moreover, global institutions continue to enthusiastically bullish on Chinese assets. Citigroup pointed out that it downgraded the rating of US stocks to neutral and upgraded the rating of Chinese stocks to buy. Citigroup analysts said that the "news flow" of the US economy in the coming months may lag behind the rest of the world, and more negative data on the US economy is expected. It may not have a chance to perform until the AI theme is re-emphasized. Regarding Chinese assets, Citigroup believes that they still look attractive even after the recent rise in the Chinese stock market, thanks to the breakthrough in AI by DeepSeek, government support for the technology sector, and still cheap valuations.