Nvidia delivered strong quarterly revenue guidance despite excluding China data center sales, while South Korean solar shares surged on continued American restrictions on Chinese peers. Elsewhere, US and Chinese officials established an artificial intelligence dialogue, and Saudi Arabia exited China's mBridge digital payment initiative.
01Macro
IMF Says Sri Lanka Economy Shows Resilience Amid Downside Risks
channelnewsasia.com reports that the International Monetary Fund stated Sri Lanka's economy is showing resilience despite facing downside risks following a staff visit to the island nation. The country operates under a $2.9 billion IMF programme designed to aid recovery from the 2022 economic upheaval caused by severe dollar shortages. The lender approved a $700 million double tranche in May to bolster reserves and projected 3 per cent economic growth for this year. Sri Lanka continues to manage high driven by energy costs from the Gulf conflict, prompting the IMF to suggest maintaining a 5 per cent inflation target. Key priorities outlined by the fund include a medium-term strategy, energy cost recovery, and investment execution. The nation imports all its fuel and has responded to surging energy costs by introducing fuel rationing, price increases, and declaring Wednesdays as public holidays.
US Treasury Secretary Bessent to Meet Chinese Vice Premier He in New York
US Secretary Scott Bessent and Chinese Vice Premier He Lifeng met in New York on Sunday to establish a bilateral communication channel for and review trade barriers ahead of a presidential summit. The officials discussed creating a US-China AI dialogue featuring a notification mechanism for national security incidents. The talks focused on easing barriers for $30 billion worth of goods traded under the Board of Trade mechanism launched earlier this year. Both sides also addressed a trade truce due to expire on November 10. The discussions precede a Wednesday meeting in Washington between US President Donald Trump and Chinese President Xi Jinping. U.S. Trade Representative Jamieson Greer joined the New York talks to prepare the groundwork for the leadership summit.
Nvidia Data Center Sales Strategy Faces Impact From Upcoming US-China Summit
Nvidia guided for $108.0 billion of fiscal third-quarter while assuming zero compute sales to China. Reaching the figure requires growing roughly 89 percent from the prior-year quarter's $57.0 billion. The forecast arrives as President Donald Trump prepares to host Chinese President Xi Jinping at the White House on Thursday, Sept. 24, with on the agenda. Nvidia's fiscal second quarter, which ended July 26, reached $96.2 billion in revenue, up 106 percent year over year. The data center business contributed $89.0 billion of that total, representing a 117 percent increase from a year earlier. Meanwhile, Nvidia billed $7.9 billion to customers headquartered in China and Hong Kong last quarter, accounting for about 8 percent of overall revenue. Those billings largely came from products unrestricted by export rules, such as gaming and workstation chips. Shipments of H200 chips to China remained under 1 percent of data center revenue during the quarter.
South Korean solar stocks rally on expected continued curbs on Chinese sector
Cnbc.com reports that shares of South Korean solar companies Hanwha Solutions and OCI Holdings jumped more than 8% on Wednesday as United States restrictions on Chinese solar products remained in focus ahead of a Trump-Xi summit. Hana Securities stated that Washington viewing solar as a strategic industry tied to national security makes it highly unlikely that restrictions will be eased during the talks. Hanwha Solutions and OCI Holdings were named as top picks in the sector by analyst Yoon Jae-sung, who pointed to the August signing of Section 232 measures on polysilicon and its on national security grounds. Qcells, the solar unit of Hanwha Solutions, welcomed U.S. Department of Commerce and U.S. Customs and Border Protection actions to curb the illegal stockpiling of imported solar panels. Qcells Global CEO Andy Park noted that the measures help prevent importers from circumventing trade policy and support domestic manufacturing. Qcells has invested $2.5 billion to expand solar manufacturing operations in Georgia, while subsidiary OCI Energy broke ground on a new solar facility in Texas earlier this month.
China's De-Dollarization Drive Falters as Key Payment System Participant Exits
Saudi Arabia has quietly withdrawn from China's mBridge digital payment platform following the completion of a proof of concept on May 13, 2025. Fortune.com reports that the Saudi joined the -based network as an observing member in 2023 to research central bank digital currencies before exiting upon finishing its planned participation. The departure deals a blow to Beijing's efforts to establish an alternative to the dollar-dominated SWIFT system. China launched mBridge in 2021 alongside Hong Kong, Thailand, the United Arab Emirates, and the Bank for International Settlements. The BIS itself left the platform in October 2024, though it stated it had graduated out rather than bowing to political pressure. Saudi Arabia forms the foundation of the petrodollar regime established in 1974, which underpins the greenback's use in roughly 90 percent of global transactions. Despite these exits, transactions on mBridge have surged to more than $55 billion, marking a roughly 2,500-fold increase since 2022 while adding Macau as a participant.
Poland's Orlen Partners With Naftogaz to Supply LNG and Fuel to Ukraine
Polish energy group Orlen will supply Ukraine with three cargoes of in the first quarter of 2027 under new agreements signed with state-owned Naftogaz. The arrangement bolsters fuel supplies as Ukraine braces for a difficult heating season following sustained attacks on its domestic energy infrastructure. In addition to the deliveries, Orlen subsidiary Ukrnafta will receive motor fuel worth up to $500 million to stabilize domestic markets. Retail prices for motor fuel in Ukraine have climbed by 8% to 10% since the start of the month, with diesel nearing 100 hryvnias, or $2.24, per litre amid disruptions linked to conflict in the Middle East. Ukraine relies entirely on imported fuel after Russian missile strikes destroyed its domestic refining capacity. The agreements also allow Ukrnafta to explore refining its own domestic output at facilities in Central Europe. Before the invasion in 2022, Ukraine produced approximately 1.5 million metric tons of crude and gas condensates annually.
Hong Kong Stocks Eye Inflows From Mainland Chinese Insurers
scmp.com reports that Hong Kong are anticipating fresh inflows from mainland China's 41 trillion yuan insurance industry as participating institutions begin deploying into local exchange-traded funds. Market observers noted a spike in trading volume for several Hong Kong-listed exchange-traded funds on Monday, pointing to early accumulation by mainland insurers. The National Financial Regulatory Administration authorized mainland insurers to access Hong Kong exchange-traded funds through the cross-border Stock Connect programme in the prior month. Select Chinese insurers recently received operational guidelines governing these exchange-traded fund allocations, according to the China Securities Journal. This regulatory shift follows earlier Beijing measures allowing mainland insurers to acquire trading in Hong Kong and authorizing offshore Chinese government bond trading in the city. These cross-border channels are intended to support local equities after prolonged underperformance relative to global peers lacking direct exposure to themes.
Cross-border tech policies and regulatory shifts are reshaping global trade routes from semiconductor supply chains to digital payments. Whether diplomatic dialogues can ease trade friction before upcoming summit talks unresolved.
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