CICC: Non-U.S. Markets Offer More Opportunity in Second Half of 2025

Key Takeaways:

CICC sees stronger investment potential in non-U.S. regions in H2 2025.

U.S. economic slowdown may drag global momentum, while looser monetary policy abroad supports other regions.

CICC favors Europe and emerging markets, advising a balanced allocation strategy.

According to Jinshi Data, China International Capital Corporation (CICC) believes that global economic conditions will remain generally stable through the first half of 2025, with major central banks continuing rate cuts to support growth.

However, in the second half, a projected slowdown in the U.S. economy could weigh on global momentum, while non-U.S. regions may benefit from more accommodative policies and underutilized economic capacity.

Regional Outlook: Favoring Europe and Emerging Markets

CICC analysts note that non-U.S. regions still have room to close output gaps, but policy uncertainty and early-year export growth may limit the extent of recovery. Despite this, they maintain a positive outlook on the European market and recommend increasing exposure to emerging markets while maintaining a balanced asset allocation.

“Policy support and cyclical repair in non-U.S. markets may offer better risk-adjusted returns in H2,” the report stated.