Core Viewpoint - The current global order is undergoing a significant restructuring, with China aiming to increase its financial weight and influence to match its manufacturing and supply chain capabilities, particularly through the rise of the renminbi and renminbi-denominated assets [1][15][37]. Group 1: Global Order and Economic Dynamics - The ongoing trade and tariff conflicts between the US and China represent a structural confrontation over the future global order, rather than mere disputes over tariffs [6][14]. - China's manufacturing dominance is increasingly misaligned with the declining financial hegemony of the US dollar, which is a root cause of current tensions [14][11]. - By 2030, China's manufacturing output is projected to account for 45% of global manufacturing, highlighting the growing disparity between China's industrial strength and the US's financial structure [10][9]. Group 2: Financial Mechanisms and Trade Relationships - The traditional dollar-based financial system is losing its effectiveness, as evidenced by the breakdown of the dollar's closed-loop mechanism in international trade, particularly in transactions between China and countries like Saudi Arabia [12][13]. - The shift towards bilateral and multilateral trade mechanisms is increasing, further weakening the dollar's dominance in global trade [14][15]. Group 3: Strategic Recommendations for China - China must adopt a strategy of greater openness, balance, and market orientation to enhance its economic resilience and global standing [30][39]. - The focus should be on improving domestic consumption and ensuring that economic growth benefits a broader segment of the population, thereby driving internal circulation [41][40]. - Establishing a unified market and eliminating discrimination against the private sector are essential steps for fostering a more competitive economic environment [42]. Group 4: Investment Opportunities - The current market dynamics present opportunities for investors to capitalize on China's core assets, particularly in the context of ongoing strategic competition with the US [63][64]. - The newly established CSI A500 index is seen as a representation of China's core assets, providing a high potential return for long-term investments [64][65].

Group 1 - The article discusses the recent increase in expectations for a rate cut by the Federal Reserve, with the 2-year U.S. Treasury yield dropping to a new low, indicating market bets on a March rate cut [2][25]. - The article suggests that the Federal Reserve's previous hawkish stance was more of a facade, as it is aware of the underlying inflation issues caused by the Biden administration's spending [3][11]. - The article highlights that the reduction in fiscal spending initiated by the Trump administration is starting to show results, contributing to the current economic conditions [12][24]. Group 2 - Consumer confidence has decreased, and the Nasdaq is undergoing adjustments, reflecting a shift in market expectations [26][28]. - The article notes that the Federal Reserve's decisions on rate cuts are influenced by market expectations rather than just economic data, suggesting that anticipated changes can lead to actual market movements [34][39]. - The article emphasizes that a potential rate cut by the Federal Reserve could positively impact both the A-share and A-bond markets, while also warning of the risk of foreign capital selling A-bonds if a consensus on rate cuts is reached [46][47]. Group 3 - The article discusses the dynamic nature of market predictions, emphasizing that market participants must adapt to the actions of others rather than relying on static forecasts [50][56]. - It mentions that recent market behavior has shown a shift towards blue-chip stocks, with banks and liquor stocks performing well while technology stocks face adjustments [59][60]. - The article concludes by stating that while market adjustments are inevitable, predicting the timing and extent of these adjustments is challenging, and investors should be prepared for volatility [64][66].