PRE-MARKET CHINESE STOCKS NEWS: US reportedly approved around 10 Chinese firms to buy NVIDIA H200 chips, Chinese New Yuan Loans unexpectedly contracted in April
Alibaba Health Information Technology (241 HK) - Co. FY25 (CNY) net rose to 1.94bln from 1.43bln Y/Y, rev. missed expectations at 34.3bln (exp. 35.1bln). (Newswires)
China Coal Energy (1898 HK) - Co. reported April commercial coal production of 10.0mln tonnes, down 9.3% Y/Y. (Newswires)
China Gold International Resources (2099 HK) - Co. Q1 (USD) net 236.4mln (prev. 86.0mln Y/Y), rev. 453.2mln (prev. 273.1mln Y/Y). (Newswires)
Ferretti (9638 HK) - Co.'s Board Chairman is to retire, while the CEO is also to step down. (Newswires)
Hua Hong Semiconductor (1347 HK) - Co. Q1 (USD) net 20.9mln (exp. 26.8mln), rev. 660.9mln (exp. 659.9mln), while it guided Q2 revenue of 690-700mln (exp. 716mln) and gross margin of 14-16% (exp. 14.6%). (Newswires)
Shanghai Fosun Pharmaceutical (2196 HK) - Co. signed an exclusive global option agreement with AriBio for AR1001 for the treatment of Alzheimer's disease. (Newswires)
Semiconductor Manufacturing International (981 HK) - Co. Q1 (USD) net 197mln (exp. 214.8mln), rev. 2.51bln (prev. 2.25bln Y/Y), while it guided Q2 revenue growth of 14-16% Q/Q and gross margin of 20-22% (exp. 20.5%). (Newswires)
Trade
White House said President Trump had a good meeting with Chinese President Xi and that both sides discussed ways to enhance economic cooperation. White House added that both sides agreed the Strait of Hormuz must remain open and agreed Iran could never have a nuclear weapon. They also discussed expanding market access for American businesses into China and increasing Chinese investment, while highlighting the need to build on progress in ending the flow of fentanyl precursors into the US. They also discussed increasing Chinese purchases of American agricultural products and increasing oil trade. (Newswires)
US President Trump said it had been a “fantastic day” and that he had held “extremely positive and productive meetings”, while he added that discussions had been good for both China and the US. Trump invited Chinese President Xi to White House on September 24th and described the US-China relationship as “one of the most consequential in world history” and “very special”, as well as stated there was a chance to create a “future of great prosperity”. (Newswires)
US President Trump said Chinese President Xi had agreed to buy 200 Boeing (BA) aircraft and reiterated that Xi wanted an agreement on Iran, while refusing to provide military equipment to Tehran. Trump added that Xi wanted to continue buying Iranian oil and opposed Iran charging Hormuz tolls. Trump further stated, “Boeing wanted 150, they’ve got 200 big ones”, during an interview with Fox. (Fox)
Chinese President X, at the state banquet with the US delegation, described the visit as historic and said rejuvenation of China and “Make America Great Again” could go hand in hand. Xi added China-US ties had remained stable through talks with President Trump and said both leaders believed China-US relations were the most important bilateral ties in the world. (Newswires)
China People’s Republic Chair Qiang said the US and China should focus on cooperation and continue to be friends. (Newswires)
US Treasury Secretary Bessent, asked about reports that NVIDIA (NVDA) H200 chips had been approved for some Chinese companies, said it would be news to him if approvals had been granted. Bessent added that “soybeans are all taken care of” and said he expected large Boeing (BA) orders related to trade with China. This follows an earlier source report that the US approved around 10 Chinese firms to buy NVIDIA H200 chips, and that approved buyers included Alibaba, ByteDance, Tencent and JD.com. (Newswires)
US Treasury Secretary Bessent said the US and China would discuss AI guardrails and that China remained substantially behind the US in AI, despite still being advanced. Bessent said the US did not want to stifle innovation and that AI required the highest levels of safety. Furthermore, he said President Trump would have more to say on Taiwan in the coming days and would be resolute in his answers, while on reducing tariffs on Chinese trade, Bessent said the idea was to start with USD 30bln. (Newswires)
US Secretary of State Rubio said US policy on Taiwan remained unchanged, according to NBC News. Rubio added that arms sales to Taiwan had not been prominent in discussions with China and said the US and China agreed Strait of Hormuz should not be militarised, while he added that the US was not asking China for help regarding Hormuz. (Newswires)
US Senator Warren said President Trump was clearing a sale of advanced AI chips to China, while criticising both Trump and Nvidia (NVDA) over previous chip sales to China. (Newswires)
Data Recap
- Chinese New Yuan Loans (Apr) -10.0B vs. Exp. 300B (Prev. 2990B)
- Chinese Total Social Financing (Apr) 620.0B vs. Exp. 1500B (Prev. 5230B)
- Chinese M2 Money Supply YoY (Apr) Y/Y 8.6% vs. Exp. 8.5% (Prev. 8.5%)
The U.S. approving several Chinese firms to purchase NVIDIA H200 chips is a significant step in U.S.-China relations, suggesting a thaw in tech trade tensions, which could improve market sentiment around technology and semiconductor stocks. However, the unexpected contraction in new yuan loans indicates potential economic challenges in China, raising concerns over the sustainability of recovery efforts and possibly influencing future monetary policy shifts. This dual narrative will likely affect both equities and currency markets, particularly the USD and CNY.