The key insights presented in this article stem from the February 2025 Monthly Situation Analysis Meeting hosted by Xijing Investment Group. During the session, Ms. Liu Yang, the Chair and Chief Investment Officer of Xijing Investment, Dr. Zhao Jian, Dean of Xijing Research Institute, as well as fund managers from Xijing's Shanghai and Singapore offices, and other participants shared their perspectives. A summary of the meeting's contents follows:

Core Viewpoints

2025: The Dawn of Profound Transformations

As we enter 2025, global focus has intensified on the dynamic interplay between China and the United States across political, economic, technological, and other realms. These developments have once again placed both nations under the digital era's scrutiny, suggesting that the evolution of the world order has reached a pivotal juncture.

On January 20, Trump returned to the White House, swiftly enacting a series of 'America First' policies, ranging from declaring a border emergency to advocating territorial expansion, from boosting traditional energy development to withdrawing electric vehicle subsidies. Each initiative aims to redefine America's developmental logic and economic landscape. The executive order imposing additional tariffs on February 1 reignited the flames of international trade wars. Although tariffs on Canada and Mexico were subsequently suspended, this move has once again disturbed the balance of China-US relations, tightening the nerves of the global trade chain.

Concurrently, as previously highlighted in reports and live broadcasts, we have again observed a trading logic where market expectations pricing outweighs real-world pricing. US Treasury bonds peaked in the week preceding Trump's inauguration, while US stock market volatility continued to escalate, displaying a clear trend of turmoil at the peak. The Trump 2.0 trade peaked and fell even before Trump's inauguration. Despite robust consumption, the US economy currently exhibits signs of peaking, with the risk of stagflation looming. Looking back at the A-share market, while January was not tumultuous, it was far from tranquil. The uncertainty surrounding China-US trade relations and the global economic outlook made market sentiment unpredictable, lacking a clear trend. However...

The Constant Amidst Great Changes: The Evolution of AI

From Google's initial proposal of the Transformer architecture in 2017, to NVIDIA's product-level acceleration and optimization, to the emergence of ChatGPT in 2022, AI has been iterating and improving at an astonishing pace, permeating every facet of society and the economy. This year, the sudden rise of Deepseek has catalyzed explosive growth in generative AI, bringing low-cost, large-scale cognitive equality closer than ever before. An era of AI productization, scenarization, and industrialization spurred by efficiency gains has officially commenced, marking the global AI industry's entry into the 2.0 era.

Through model distillation optimization, Deepseek has achieved remarkable advancements in AI algorithms, particularly in proofreading efficiency. While not an original innovation, its exemplary engineering model will undoubtedly accelerate the productization and commercialization of AI applications, once again exemplifying China's outstanding engineering prowess. As we celebrate and take pride in our engineers' exceptional contributions, we must also recognize that for Silicon Valley scientists, the pioneers of AI, commercialization refinement and model refinement might merely be a matter of priority, not capability. Therefore, we must remain vigilant and avoid complacency.

Market Outlook for Computing Power Hardware, with a Focus on NVIDIA...

Anticipating the Emergence of a New World Order

The power transition in Washington and the peak rivalry between China and the US in AI in 2025 will undoubtedly serve as catalysts for reshaping the world order. As Eastern wisdom converges with Western computing power in the digital realm, the ship of human civilization sails into uncharted waters. If Silicon Valley scientists are altering the cognitive patterns of society's elite, then Chinese engineers are transforming the cognition of all humanity, promoting the democratization of the AI industry, the process of cognitive equality, and accelerating the realization of the human AI revolution. This can be termed...