And the Winner Is....China!

A more sustainable rally

MSCI China index has outperformed the MSCI US index by more than 25% so far in 2025. And Sun Lu, strategist at Goldman Sachs, says that this rally is more sustainable than others we have seen.

"The current rally in China-related risk assets—driven by the Deepseek AI breakthrough, a policy pivot toward supporting the private sector, and a focus on boosting consumption—appears, in our view, to be more sustainable than the rally we saw last year. Deepseek's unexpected AI breakthrough triggered an organic re-rating of Chinese tech stocks, marking a significant shift in sentiment."