U.S. stocks are at risk of a second wave of sell-off, and Tiger Brokers is bullish on opportunities in Chinese tech stocks.

Tiger Brokers (Hong Kong) Asset Management's Chief Investment Officer, Chen Qingwei, believes that the first phase of the decline in US stocks has been completed, and the valuations of many large technology stocks have temporarily returned to reasonable levels. However, the macro risks in the US are still large. The firm believes that the technological progress of AI is accelerating this year, and more AI agents will appear in the future, which will change the existing business models and people's lifestyles, bringing about larger and more lasting profit growth. Considering the pressure faced by US stocks, the firm is optimistic about the continued upward opportunities of Chinese tech stocks this year. It is advisable to allocate valuable high dividend stocks to diversify risks. At present, US stocks have retraced all the gains since Trump's inauguration, and the S&P 500 index has reached a key support level of around 5,600 points. However, the Fed will not reduce interest rates too quickly amid uncertainties over inflation pressure from tariffs, and companies may scale back future capital expenditures amid uncertainties in the macro environment, affecting profit expectations and eventually leading to a second wave of decline, with the market sentiment deteriorating and leading to a wave of panic selling, which may push the S&P 500 back to around 4,800 points in 2021. However, Chen Qingwei said that even if the US stock market enters a bear market, a significant rebound has never been absent, and the time and extent depend on when and how much the Trump administration's tax cuts and deregulation policies will benefit the economy. The main concern for investors is the uncertainty of Trump's policies, and the technology stocks have already recorded significant gains in the past two years, so there will be more stop-loss orders. From a funding perspective, the funds that have been added to US stocks since Trump's inauguration have been squeezed in large areas, and will also bring continuous selling pressure to the possible rebound. In the long run, Tiger Brokers (Hong Kong) believes that the technological progress of AI is accelerating this year, and it is expected to bring larger and more lasting profit growth. For some leading companies with strong technological barriers in AI hardware, infrastructure and applications, their future profit growth is relatively certain, and their current valuations have obvious performance support. It is advisable to start deploying and allocating them in batches, and if the market sentiment deteriorates further due to macro factors, it will be a better opportunity.