[True Insight Institutional View] Nvidia and AMD share 15% of China business revenue agreement with US government. Southbound Stock Connect recorded a net inflow of HKD 0.038 billion on Monday.

Market Commentary

NVIDIA and AMD's agreement to share 15% of their China business revenue with the U.S. government marks a significant shift in the global tech trade landscape. This unprecedented arrangement essentially transforms export controls from a national security tool into a government revenue source, setting a precedent for "pay-to-access." From a macro perspective, this move reflects the Trump administration's strategy of monetizing trade policy, forcing U.S. companies to pay the government for export privileges. This model could reshape international trade rules. For the global semiconductor supply chain, while the agreement temporarily alleviates the pressure of U.S.-China tech decoupling, it also highlights the direct impact of geopolitical risks on corporate operating costs.

On Monday, the Southbound Stock Connect recorded a net inflow of HKD 0.38 billion, with Xiaomi Group (01810.HK) seeing the highest net inflow at HKD 560 million, followed by Akeso Biopharma (09926.HK). XPeng (09868.HK), however, recorded the largest net outflow at HKD 660 million, followed by Innovent Biologics (01801.HK).

Source: KGI Asia