<div id="readability-page-1"><div>ASMPT (00522.HK) +6.100 (+3.547%) Short selling $43.94M; Ratio 3.942% opened flat today and once hit an intraday high of HKD182.4. It is now trading at HKD179.2, up 4.19%, with 2.2899 million shares traded, involving HKD406 million.Earlier reports indicated that the US government had approved the sale of NVIDIA Corporation (NVDA.US) H200 artificial intelligence chips to 10 Chinese companies. However, US President Donald Trump later said &#34;H200 is very good, China needs it,&#34; while confirming that the Chinese side had not approved the transaction, stating that &#34;they chose not to do so, they want to try to develop it themselves.&#34; US Trade Representative Greer noted that chip export controls were not discussed during the talks.Citi said in a research report that the US has reportedly approved the export of Nvidia H200 chips to 10 Chinese companies, with a cap of 75,000 units per company. The total import volume of 750,000 units is in line with industry expectations. The broker believes that although the approval of H200 may have a short-term negative impact on domestic AI accelerator vendors, foundries and wafer fabrication equipment suppliers, the 750,000 units are far below Chinas AI chip demand. China is still expected to meet demand through domestic accelerators, and the localization process of AI will not be hindered.Citi added that the H200 approval is slightly positive for server suppliers and MONTAGE TECH (06809.HK) +4.600 (+1.025%) , as it is expected to drive demand for memory interfaces and PCIe Retimers. The broker also noted that capital expenditure by Chinese cloud service providers (CSPs) remains strong. BABA-W (09988.HK) -2.200 (-1.663%) Short selling $1.91B; Ratio 15.870% , TENCENT (00700.HK) -6.600 (-1.446%) Short selling $1.56B; Ratio 12.851% and ByteDance have all raised their capital expenditure, which is expected to further boost demand across the domestic supply chain.Citis top picks are ASMPT (00522.HK) +6.100 (+3.547%) Short selling $43.94M; Ratio 3.942% (TP raised to HKD180) and SG (300661.SZ) -1.020 (-0.945%) , citing improving industry prospects and attractive risk-reward profiles. On memory, Citi said Kioxias strong outlook may support positive sentiment in the memory sector in the near term, but noted that MONTAGE TECHs recent share price gains have reduced its risk-reward attractiveness.</div></div>

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ASMPTshares rose by 4.19% following Citi's optimistic report on the approval of NVIDIA's H200 chip exports to Chinese companies. Despite potential short-term impacts on domestic AI vendors, demand for AI chips in China remains strong. Citi's top picks include ASMPT, with a target price raised to HKD180, citing improving industry prospects. Other companies like MONTAGE TECH and major Chinese cloud service providers are also expected to benefit from increased capital expenditure.

ASMPT Gains Over 4% on Citi Optimism