Group 1: Core Insights - The report highlights a significant shift in the Chinese stock market, with A-shares showing strong performance, particularly in the technology sector, driven by increased non-bank deposits and a shift in resident investment behavior [1][10][11] - The report notes that non-bank deposits increased by 4.69 trillion yuan year-to-date as of July, marking a new high since 2015, while resident deposits decreased by 1.11 trillion yuan in July, indicating a potential "money migration" towards the stock market [2][17][20] - The report emphasizes that the current market conditions resemble the early stages of a bull market, with small-cap stocks outperforming large-cap stocks and growth sectors leading over cyclical sectors [5][20] Group 2: Industry and Company Recommendations - The report recommends focusing on the copper-clad laminate (CCL) upstream sector, as the demand for high-frequency and high-speed materials is increasing due to AI server and chip requirements, with price increases already observed in the industry [6][23] - The banking sector is also highlighted for its stability amid potential macroeconomic risks, although it may not offer the same growth potential as the technology sector [6][23] - The report suggests that the strong performance of Tencent in Q2 2025, driven by AI integration across its core businesses, positions it as a key player in the technology sector [11][12]

Core Viewpoint - The article discusses a new U.S. government policy requiring NVIDIA and AMD to pay 15% of their revenue from specific AI chip sales in China as a licensing fee to obtain export licenses, marking an unprecedented approach in U.S.-China trade relations [3][5]. Group 1: Revenue Sharing Model - NVIDIA and AMD must pay 15% of their sales revenue from the H20 and MI308 chips sold in China to the U.S. government to secure export licenses [5]. - The H20 chip, designed specifically for the Chinese market, has only 20% of the performance of NVIDIA's flagship H100 chip [5]. - This revenue-sharing model is reminiscent of practices from the Trump administration, which previously banned NVIDIA from selling the H20 chip to China [5][7]. Group 2: Financial Implications - Following the ban in April 2025, NVIDIA faced an estimated loss of $8 billion in revenue, with the Chinese market accounting for 12.5% of its global revenue [7]. - Analysts estimate that NVIDIA could sell approximately 1.5 million H20 chips in China, generating around $23 billion in revenue, leading to a potential payment of about $3.45 billion to the U.S. government [7]. - AMD, which relies on the Chinese market for 24% of its revenue (approximately $6.2 billion), is also subject to the same licensing fee terms [7]. Group 3: Responses and Reactions - NVIDIA stated that it complies with U.S. government regulations for participating in the global market, without denying the existence of the agreement [8]. - Public reactions include concerns about the implications of the revenue-sharing model, with some comparing it to a tax increase [9].