After struggling in 2024, China's stock market is roaring as its AI trade soars. Meanwhile, US peers are hobbled by growth concerns and waning enthusiasm.

SINGAPORE] Citigroup downgraded US equities to neutral from overweight while upgrading China to overweight, saying that US exceptionalism is at least on pause. Read more at The Business Times.

Citi cited the S&P 500's fall below its 200-day moving average and the underperformance of market-leading stocks as signals of a weak near-term trend.

Citi analysts cut their recommendation for U.S. stocks to "neutral" from "overweight" on Monday after recession fears pummelled the market, arguing that the U.S. economy may no longer outpace the rest of the world in the coming months.

Chinese shares look attractive even after their recent rally, Citi strategists wrote, citing DeepSeek’s AI breakthrough and still-cheap valuations.