After Deepseek's popularity, the entire asset needs to be revaluated or revaluated.

In the latest report on February 5, Deutsche Bank said that 2025 is a year ahead of other ones, and stocks are expected to be "valuation discount" Disappear, the A-share/Hong Kong stock bull market will continue and exceed the previous high. Deutsche Bank said: 2025 is seen as a year for the investment community to realize that it is leading the global competition. It is becoming increasingly difficult to disavow that companies provide cost-effective and high-quality products in multiple manufacturing and service industries.

We expect the "valuation discount" of stocks to disappear, and profitability may exceed expectations due to support for consumption and financial liberalization. The bull market for Hong Kong stocks/A-shares began in 2024 and is expected to exceed the previous high in the medium term.

Specifically, Deutsche Bank said that manufacturing and services occupies a global leadership position, and DeepSeek is more like the "Sputnik" moment p>

also occupies a leading position in the fields of clothing, textiles, toys, basic electronics, steel, shipbuilding, and complex industries such as telecommunications equipment, nuclear energy, national defense and high-speed railways. And in 2025, the world's first sixth-generation fighter and its low-cost artificial intelligence system, DeepSeek, were launched within a week.

Mark Anderson calls the launch of DeepSeek "the Sputnik moment of artificial intelligence," but it's more like the Sputnik moment, knowledge The property rights have been recognized. List of areas that excel in high value added areas and dominate supply chains is expanding at an unprecedented rate.

Deutsche Bank believes that Japan, which is now in the early 1980s, is beginning to realize , now it is not Japan in 1989, but Japan in the early 1980s, when Japan's value chain was rising rapidly, providing higher quality products at lower prices and constantly innovating.

In addition, Deutsche Bank optimistically pointed out that the Sino-US trade issue may bring positive surprises, and that trade and markets are not so closely related:

< p style="text-align: left;">As enterprises around the worldThe dominance within the enclosure continues to consolidate, and the valuation discount seems to eventually turn into a premium. We believe investors will have to turn quickly in the medium term and it will be difficult to get stocks without pushing up the stock price. The advantages of manufacturing industry are becoming increasingly prominent in recent years.

Deutsche Bank said: From its initial rise in the fields of clothing, textiles and toys, It has now dominated the fields of basic electronics, steel, shipbuilding, etc., and the development trajectory of the manufacturing industry is impressive. Especially in the fields of white goods and solar energy, the performance of enterprises has emerged.

It is worth noting that its rise in complex industries such as telecommunications equipment, nuclear power, national defense and high-speed railways has demonstrated its strong technical strength. At the end of 2024, its rapid rise in the field of automobile exports attracted global attention, and its high-performance, attractive appearance and competitive price electric vehicles (EVs) successfully entered the international market. In 2025, the world's first sixth-generation fighter and low-cost artificial intelligence system DeepSeek were launched in just one week, which is regarded as an important symbol of the recognition of intellectual property rights.

The strength of the manufacturing industry can be confirmed in the following aspects:

Export size: The export volume of goods is twice that of the United States, contributing 30% of the global manufacturing value added.

Patent application: In 2023, it accounts for nearly half of global patent applications. In the electric vehicle field, it has about 70% of patents, and there are similar advantages in the fields of 5G and 6G telecommunications equipment.

Talent reserve: except India, there are more STEM (science, technology, engineering and mathematics) graduates than the rest of the world.

Industrial cluster: Created local professional clusters similar to Silicon Valley for key industries and worked closely with universities in research.

More like Japan in the early 1980s

Deutsche Bank believes that it is more like Japan in the early 1980s:

DayThis growth is achieved by leveraging abundant cheap labor, intensive use of capital and increased productivity. Investment accounts for more than 30% of GDP, thanks to financial suppression that keeps interest rates low. Japan acquires new technology through joint ventures. Savings accounted for 40% of GDP in the early 1970s, and then dropped to nearly 30% in the early 1980s. Japan began to set up factories overseas in the 1970s to avoid trade frictions, and has only recently begun to take such actions.

Deutsche Bank also stated:

: left;">The liberalized financial system is helpful in promoting consumption, by normalizing interest rates, thus ending the transfer of funds from depositors to enterprises. This will reduce overinvestment and overcompetition because capital is rationed, which will help increase the return on state-owned enterprises. We expect that as state-owned enterprises increase returns, they will demand relief from excessive competition to increase stock value. We expect this to become a key topic in 2025, and this factor will be a key factor driving the bull market.

In addition, the economy and exports still maintain rapid growth. In 2024, exports increased by 7%, exports to Brazil, the UAE and Saudi Arabia increased by 23%, 19% and 18% respectively, and ASEAN in the Belt and Road Initiative increased by 13%. Exports to ASEAN and BRICS are now equivalent to the combined exports to the United States and the EU, and the export market share to these destinations has increased by two percentage points per year over the past five years.

The driving force of economic growth comes from several aspects:

Manufacturing advantages: in almost all In the industry, they all have world-leading companies and are constantly seizing market share.

"Belt and Road" Initiative: The initiative opens up regions such as Central Asia, West Asia, the Middle East and North Africa, expanding potential markets. Automation leads: About 70% of industrial robots are installed in , driving productivity advantages.

Domestic Demand Potential: Household deposit growth slows to double the nominal GDP growth rate, but savings have increased by $10 trillion since 2020, and these are expected Savings will flow into the consumer and stock markets in the medium term.

China-US trade issues may bring positive surprises, and trade and markets are not so closely related.According to a previous report by CCTV News, US President Trump signed an executive order on February 1, imposing a 10% tariff on imported goods. But Deutsche Bank believes that the actual situation may be more favorable than expected. Trump seems to value tactical victory more than insist on ideological stances that are difficult to gain support.

The launch of DeepSeek has shaken the world's belief that it can be contained. A better approach might be to stimulate business by lowering regulation, providing cheap energy and relatively low barriers to import intermediate products. It is expected that a more trade-oriented stance will eventually become part of the developing "America First" agenda before the midterm elections.

Deutsche Bank analysts believe that a fast-reached Sino-US trade agreement may involve limited tariffs, revoking some current restrictions, and some between the United States and companies Large contract. If this happens, the stock market is expected to rise.

A decline in exports may actually drive the stock market up for a period of time. Dominance in various industries is achieved through excessive investment in many areas. If supply can be limited, it may be beneficial to stocks and release some capital for consumption. Overall, Deutsche Bank believes that as the dominance of enterprises on a global scale continues to consolidate, investors may need to quickly adjust their strategies to increase their market Configuration. Hong Kong/stock markets are expected to continue to lead the global market in the medium term, continuing their strong performance in 2024.

We believe global investors tend to be severely under-equipped, just as they shy away from fossil fuels a few years ago until the market punishes those who make non-market decisions . We see that the fund's holdings today are similar. Investors who like leading companies and have moats cannot be ignored. Nowadays, companies have broad and deep moats, not Western companies.

As the company's dominance on a global scale continues to consolidate, the story valuation discount seems to eventually turn into a premium. We believe investors will have to turn quickly in the medium term and it will be difficult to get stocks without pushing up the stock price. We have been optimistic before, but we are troubled by what factors that will drive the world to awaken and buy, the "Sputnik Moment" (or dominance in the electric vehicle sector) we believe is this factor.