Q1 2025 Global Financial Market Review

 

In the first quarter of 2025, the global stock market showed significant differentiation: Trump's tenure brought an overwhelming influx of new policies. A breakthrough in DeepSeek's AI technology led to a restructuring of valuation in the US tech sector, with the NASDAQ index falling by 10.42% for the quarter, marking the largest quarterly drop since 2020. Tesla (-35.83%) and Nvidia (-19.6%) led the decline. Uncertainties over Trump's tariff policy, global inflation rebound risks, and geopolitical tensions drove gold prices up for the quarter. US bond yields fell sharply, reflecting market concerns about economic recession. In contrast, Hong Kong's Hang Seng Index rose by 15.25%, highlighting the importance of cross-market allocation in diversifying single risk.

 

 

Stable Performance of Flagship Investment Portfolio

 

AQUMON's global asset allocation strategy is rooted in scientific principles, utilizing big data and algorithms to achieve stable, risk-adjusted returns for our clients.

 

AQUMON's Classic Three-Step Process:

• Select broad asset classes for allocation.

• Carefully choose ETFs to represent these asset classes.

• Dynamically adjust weights based on correlation observations.

 

Our model-driven approach, combined with strict risk control and scientific diversification, successfully helps clients reduce investment risk and achieve steady returns.

 

The SmartGlobal Conservative Portfolio (40% stocks + 60% bonds, allocated through Hong Kong-listed ETFs) has shown significant advantages in complex market environments, achieving an annual return rate of 8.48% over the past year, and maintaining a steady growth of 0.98% this quarter. Even more impressive, the SmartGlobal Max Conservative Portfolio (20% stocks + 80% bonds, allocated through US-listed ETFs) has defied the market's sharp fluctuations with its unique risk control mechanism, achieving an annual return of 5.72% over the past year and leading the pack this quarter with a continued positive return of 1.29%.

 

 

Against the backdrop of increasing uncertainty in global investment, AQUMON's flagship portfolio effectively avoids systemic risk in a single market, continuously creating long-term value through economic cycles.

 

Theme Portfolios Precisely Capture Structural Opportunities

 

In the first quarter of 2025, the performance of the Hong Kong stock theme portfolio was very eye-catching under the dual drive of the landing of AI technology and the valuation repair of Chinese concept stocks. Among them, the "Hong Kong Market Leaders" and "Chinese Tech Stars " portfolios achieved respective cumulative returns of 14.56% and 11.84% for the first quarter of 2025. The "High Dividends", "Business Winners", and "Property Moguls" portfolios also performed well, with annualized returns of over 12% in the past year. This allows investors to capture both Beta returns and enhance Alpha through segmented tracks.

 

 

 

Q2 2025 Global Market Outlook

 

Market volatility continues, and actively responding to policy changes and seizing growth opportunities will be key. The new tariff policy that Trump may introduce (expected to be implemented in April) could exacerbate market volatility. It is suggested to increase the allocation of Hong Kong stocks, currently valued at a historically moderate to low level, to hedge risks. As the Fed delays interest rate cuts, it is recommended to maintain US bond allocation, which can help reduce the impact of stock market volatility on the portfolio. On the other hand, China's upcoming consumer stimulus policy will benefit leading consumer companies in the Hong Kong stock market, and it is recommended to appropriately increase the weight of these stocks in the portfolio.

 

 

About us

AQUMON is a Hong Kong based award-winning financial technology company. Our mission is to leverage smart technology to make next-generation investment services affordable, transparent and accessible to both institutional clients and the general public. Through its proprietary algorithms and scalable, technical infrastructure, AQUMON’s automated platform empowers anyone to invest and maximize their returns. AQUMON has partnered with more than 100 financial institutions in Hong Kong and beyond, including AIA, CMB Wing Lung Bank, ChinaAMC, and Guangzhou Rural Commercial Bank. Hong Kong University of Science and Technology, the Alibaba Entrepreneurs Fund, affiliate of BOC International Holdings Limited, Zheng He Capital Management and Cyberport are among AQUMON's investors. 

 

The brand is held under Magnum Research Limited and is licensed with Type 1, 4 and 9 under the Securities and Futures Commission (SFC) of Hong Kong. AQUMON is also licensed by the U.S. Securities and Exchange Commission (SEC) and the Asset Management Association of China (AMAC).

 

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