In March 2025, the domestic equity market has shown robust performance, with benchmarks rising over 3%. This surge is attributed to various factors, notably the positive sentiment surrounding Chinese stocks, which have reached a three-year high in interest from U.S. investors. The optimism is fueled by recent developments in China's technology sector, particularly following the emergence of DeepSeek, a startup that has prompted reevaluation of AI investment strategies in both Wall Street and Silicon Valley. Despite this, venture capital activity in China has not yet seen a corresponding increase. Overall, foreign investors are increasingly optimistic about Chinese equities, as the government addresses longstanding economic challenges.