On Monday (August 4), U.S. stocks closed sharply higher, with all three major indices rising over 1%. Chinese assets collectively strengthened, with the Nasdaq Golden Dragon China Index surging over 1.8% at one point and closing up 1.33%. The 3x Long FTSE China ETF saw an intraday peak gain of over 6%, while the 2x Long China Internet ETF jumped nearly 5%.
Market expectations for a Fed rate cut are gradually heating up.
According to Securities Times, San Francisco Fed President Mary Daly stated that the timing for rate cuts is approaching, and two 25-basis-point cuts within the year still seem like an appropriate recalibration. Goldman Sachs predicts the Fed will implement three consecutive 25-basis-point cuts starting in September, with a potential 50-basis-point cut if the next report shows a further rise in unemployment.
Chinese Assets Surge
On August 4 (Eastern Time), Chinese assets surged across the board after U.S. markets opened. The Nasdaq Golden Dragon China Index briefly rose over 1.8%, closing up 1.33%. The 3x Long FTSE China ETF and 2x Long China Internet ETF both gained over 4%, while the China Overseas Internet ETF, China Technology ETF, and 2x Long CSI 300 ETF all rose over 2%.
Among Chinese stocks, Huami Technology skyrocketed over 48% intraday before closing up 34%. Its latest earnings report showed Q2 2025 revenue reached $59.4 million, a 46.2% year-over-year increase, exceeding the upper end of prior guidance. Losses narrowed significantly, with adjusted net losses at $6.16 million, down 30.2% YoY.
For Q3, Huami’s management expects revenue of $72–76 million, representing 70–79% YoY growth.
Huami Technology is a cloud-based health service provider with globally leading smart wearable technology. It is also the first Chinese smart hardware innovator to list on the U.S. capital market.
Other popular Chinese stocks also rallied: So-Young surged over 10%, Pony.ai rose over 7%, Futu Holdings and Hesai gained over 6%, XPeng, MINISO, and 21Vianet climbed over 4%, while Tencent Music, Full Truck Alliance, New Oriental, Kingsoft Cloud, Atour Lifestyle, and UP Fintech rose over 3%. NetEase, Bilibili, Trip.com, GDS Holdings, and Vipshop advanced over 2%, with Pinduoduo, JD.com, Baidu, and Li Auto up over 1%.
