In the evening, Chinese concept stocks suddenly experienced a collective heavy decline.
According to the latest news, US President Trump delivered a speech at the New York Digital Asset Summit. He stated that the United States has already taken the lead in the fields of cryptocurrency and next-generation financial technology. The United States is ending the previous government’s regulatory war on cryptocurrency and Bitcoin.
Trump also called on Congress to pass landmark legislation that establishes simple, common sense rules for stablecoins and market structures.
It is worth noting that after the opening of the US stock market tonight, cryptocurrency concept stocks in the US stock market rose strongly, with Bakkt Holdings rising by over 34% and Bit Origin rising by over 15%.
In addition, White House Press Secretary Levitt said that Trump has made it clear that he wants to lower interest rates, and he also stated that Trump has the right to criticize the Federal Reserve’s decision.
US stocks turn red, Chinese concept stocks suffer heavy losses
Although the US stock market opened lower, it then collectively turned red, with the Nasdaq falling 1% at the beginning of trading. Among the star technology stocks, Meta rose over 2%, while Nvidia and TSMC rose over 1%.
On the news front, Nvidia CEO Huang Renxun recently announced that he will transfer the supply chain back to the United States. Huang Renxun also revealed that in the next four years, Nvidia will spend hundreds of billions of dollars in the United States to purchase locally produced chips and other electronic products. Huang Renxun stressed that he believes the Trump government can accelerate the development of the American artificial intelligence industry.
However, previously strong Chinese concept stocks suddenly experienced a collective decline, with the Nasdaq China Golden Dragon Index falling by over 3.2%. In terms of individual stocks, Zhongtong Express fell by over 6%, Xiaopeng Motors fell by over 7%, NIO also fell by over 6%, and Bilibili fell by nearly 4%.
Although there is a correction tonight, overall Chinese assets are still in high demand. According to the latest survey of Asian fund managers released by Bank of America Securities, the Chinese market has jumped to the second place in Asia in terms of asset allocation preferences.
More importantly, record breaking institutions believe that the Chinese market has now emerged from a structural bear market state. In the latest survey, investors’ pessimistic sentiment towards structural issues in the Chinese economy has fallen to a record low.
Bank of America analysts used the term ‘paradigm shift’ to describe Chinese assets in their report. They pointed out that the interviewed fund managers believe that ‘this time is different’. This hot sentiment stems from investors’ expectation that Chinese households’ spending and investments will increase, rather than hoarding cash in their deposit accounts.
Under the hot expectations, Asian fund managers have also begun to actively layout Chinese assets.
The United States releases important data again
The economic data released on Thursday showed a slight increase in initial jobless claims in the United States last week. Despite efforts by the White House to reduce the number of federal government employees, data shows that overall layoffs are still at a low level.
The US Department of Labor reported on Thursday that as of the week ending March 15th, the seasonally adjusted number of first-time jobless claims was 223000, an increase of only 2000 from the previous week and lower than Dow Jones’ expectation of 225000. The four week moving average slightly increased to 227000.