Asia Centric by Bloomberg Intelligence

Hong Kong's financial sector is roaring back, with IPOs surging and the city's exchange leading the world in public fundraising. The Hang Seng Index is up more than 30% this year, driven by biotech and tech stocks, while new stablecoin regulations are positioning Hong Kong as a digital-assets hub. Billions in untapped funds from mainland China are flowing in, fueling a wave of new family offices and a generational shift in wealth management. Vivien Khoo, CEO of the Private Wealth Management Association in Hong Kong and a member of the government's Web3 task force, joins John Lee to discuss the drivers behind the city’s comeback. She shares insights into Hong Kong’s evolving role as a global connector, the rise of next-gen investors and the impact of digital-asset regulation.See omnystudio.com/listener for privacy information.

A seismic shift is underway in global finance, led by a new breed of trading firms. Electronic market makers such as Jane Street and Citadel Securities are outpacing traditional Wall Street banks with cutting-edge technology, aggressive hiring strategies and lower regulatory burdens. In 2Q alone, Jane Street generated more than $10 billion in net trading revenue, eclipsing all of Wall Street's banks including JPMorgan and Goldman Sachs.   Should Wall Street be worried? And can these companies continue to expand into Asia? Earlier this year, Jane Street was banned from trading in the Indian securities market for alleged market manipulation, which the firm denies. Larry Tabb, head of market structure research at Bloomberg Intelligence, joins John and Katia on the Asia Centric podcast.See omnystudio.com/listener for privacy information.

For all the doomsaying about US President Donald Trump's trade and economic policies, the world's biggest economy has held up relatively well, at least on the surface. Markets are up, trade demand remains firm and the Federal Reserve is moving toward interest rate cuts, which could spur more activity. But Steven Okun, founder and CEO of APAC Advisors, warns that the worst is yet to come. Global exports that surged in the run-up to August’s reciprocal levies are cooling, the US labor market is slowing, and markets will react once the data confirms economists’ warnings, he says. Though the slew of global levies provides some clarity, questions remain over Trump's motivations on trade policy and his tendency to upend matters with one social media post. Okun speaks with John and Katia from Singapore. Join us for Bloomberg's Investment Management Summit in Singapore on Oct. 7, featuring leading investors, asset managers and experts, to unlock insights and strategies for geopolitical volatility, technology innovation and sustainable growth. Also catch John and Katia for a live episode recording with Matthew Michelini, head of Asia-Pacific at Apollo Global Management. See you there!Register here for this exclusive event: https://events.bloombergevents.com/0BAkqmSee omnystudio.com/listener for privacy information.

The Genius Act in the US and a new regulatory framework in Hong Kong have helped legitimize stablecoins, potentially setting the stage for increased usage. The two largest issuers of dollar-backed stablecoins, Tether and Circle, hold more than $270 billion in US treasuries. At least one person – US Treasury Secretary Scott Bessent – sees that rising to $2 trillion. This should reinforce the dollar's role as the world's reserve currency while disrupting the global banking and SWIFT payments system, says Yat Siu, co-founder of Animoca Brands, which has $1.8 billion in digital assets. He breaks down what's next for stablecoins and digital assets – and reveals why his company tokenized a 1708 Stradivarius violin. Siu joins John and Katia on the Asia Centric podcast.See omnystudio.com/listener for privacy information.

China's consumers are a powerful force – the world's second-biggest spenders after the US. Officials want to harness this to transform the nation into a "mega-sized consumer powerhouse," and there are some initial signs of success with increased spending on home appliances, toys and jewelry. But how sustainable is this uptick in conspicuous consumption, and how much should investors worry about the Chinese consumer being fundamentally changed by the pandemic and real estate crash? Despite policymakers efforts to create a consumer-based economy, it still only accounts for about 39% of GDP, significantly below the OECD average of 54%. This week we take a deep dive into the Chinese consumer with Catherine Lim, senior analyst for consumer and technology at Bloomberg Intelligence, and Anson Bailey, head of Asia Pacific consumer and retail at KPMG. They speak with John and Katia.See omnystudio.com/listener for privacy information.

US tariffs are seen as broadly inflationary at home and disinflationary abroad, so countries across Asia – where central banks have already begun a cycle of easing – face increased pressure on economic growth and prices. The levies loom at a time when China is mired in deflation, and Japan is trying to reinflate prices that are also weak in other Asian economies. Should investors be worried about disinflation across the region? How will that influence central bank decisions? And does it complicate the path forward for Japan's policymakers? Gareth Leather, senior Asia economist at Capital Economics, joins John and Katia to discuss China's overcapacity, the government's failure to address the issue, how it could export deflation to the region, and Japan's success at engineering price growth.See omnystudio.com/listener for privacy information.

Advanced semiconductors, the tiny components crucial for everything from smartphones to national defense, are at the heart of US-China geopolitical rivalry. It's no wonder, then, that the US has increasingly restricted China's access to these chips, while Beijing fights back with its own trade barriers. So where are we in the great chip war? Why are they so important and difficult to make? And what are the prospects for new alliances as chip-hungry countries navigate the new AI world? Chris Miller, author of Chip War and professor of international history at Tufts University, sits down with John and Katia for a crash course on this technology and what lies ahead.See omnystudio.com/listener for privacy information.

China has a near monopoly on rare earths due to decades of government foresight. The country controls 70% of mining and nearly all processing of the vital minerals used in cars, data centers and defense equipment. It's one of the biggest cards China can play in trade talks with the US. When China restricted its flow of rare earths to the US earlier this year, companies shuddered. Ford had to stop production at some plants. How did China come to dominate this industry? Can companies in the US, Japan, South Korea and elsewhere replicate China's success? And what are the roadblocks? Curtis Moore, senior vice president at uranium-miner Energy Fuels, joins John and Katia to break down the global rare earth industry.See omnystudio.com/listener for privacy information.

US President Donald Trump's trade war on the world and the Federal Reserve has increased investment risk. But it's only the latest overhang for the US, with ongoing concerns about high fiscal debt exacerbated by the passage of Trump's $3.4 trillion tax and spending package. That's prompted Idanna Appio, portfolio manager and economist at First Eagle -- a $161 billion investment manager -- to look increasingly outside the US for value. In her view, investors are too complacent about these risks, as they have yet to see the full effect of tariff and other policies on growth and inflation. She joins John and Katia to talk about where she sees value in Asia, the many risks ahead and how she allocates money as a long-term investor.See omnystudio.com/listener for privacy information.

Investors are once again questioning the sustainability of Hong Kong's foreign exchange regime. Critics argue the Hong Kong currency's peg to the dollar, dating to 1983, no longer makes sense as the city's links with China strengthen. Authorities have already intervened at least five times this year to defend the Hong Kong dollar, spending over $11 billion. Does a peg linking the Hong Kong dollar to the Chinese yuan, or a basket of currencies, make more sense? Could hedge funds attack the currency? Investors like George Soros and Bill Ackman have tried, and failed, to break Hong Kong's dollar peg. How many more times will the government need to intervene? Carlos Casanova, senior economist for Asia at Union Bancaire Privée, breaks down Hong Kong's currency regime and what's ahead. He joins John Lee and Katia Dmitrieva on the Asia Centric podcast. Related news: https://www.bloomberg.com/news/articles/2025-07-15/hong-kong-defends-fx-peg-for-a-fifth-time-as-pressure-extendsSee omnystudio.com/listener for privacy information.

The decline in US shipbuilding and China's global dominance has Washington worried. Last year, the US built just seven commercial vessels, compared to more than 1,000 for China. This has also become a national security issue, with US shipyards struggling to meet the demands of the navy, facing production delays of up to 36 months. In response, President Donald Trump has proposed levying fees on Chinese built ships entering US ports. These measures likely won't be enough to revive the industry, so what else can the government do? What role can defense allies South Korea and Japan play? And how will these levies impact shipping companies and global trade? Adam Farrar, senior geo-economics analyst at Bloomberg Economics and Kenneth Loh, shipping and logistics analyst for Bloomberg Intelligence, join John Lee and Katia Dmitrieva on the Asia Centric podcast.See omnystudio.com/listener for privacy information.

Credit spreads, or the difference between yields on corporate debt and government notes, have tightened worldwide. This would usually indicate investors are more confident in the prospects for the private sector but contradicts what's an increasingly risky economic and investment outlook amid erratic US trade policies. Meanwhile, liquidity remains a constraint and defaults – while low – are on the rise in the US. How does that change the game for a hedge fund that sometimes needs to take on-the-day bets? What surprising regions or industries hold gain for credit investors, and why is Mongolia one of them? And how much longer can the current “goldilocks” period for credit last? Monica Hsiao, co-founder and Chief Investment Officer of Triada Capital in Hong Kong, discusses investing in today's world of risk and the lessons learned from China's high-yield debacle. She joins John Lee and Katia Dmitrieva on the Asia Centric podcast.See omnystudio.com/listener for privacy information.

Once the preserve of science fiction, humanoid robotics is now in the realm of reality. From Elon Musk's Optimus to Boston Dynamics, companies are pouring money and time into developing these robots for business and commercial use. We take an in-depth look into this emerging industry with Sean Darby, equity strategist at Mizuho Securities, who compares it to the rise of EVs – what started small quickly gathered steam among consumers. It's shaping up to be a compelling trade for investors, with a basket of humanoid-related stocks in Asia up almost 60% this year, according to Bloomberg Intelligence. Darby joins John Lee and Katia Dmitrieva in Hong Kong to discuss what exactly is a humanoid robot, what can it actually do given the current technology, and what challenges lie ahead? And will they simply help us with household chores – or take all our jobs?See omnystudio.com/listener for privacy information.

Stock markets have been surprisingly resilient this year. Despite global trade chaos, war in the Middle East, Russia's extended invasion of Ukraine and domestic political strife, major equity markets around the world have rallied near record levels. Investors are finding a lot to like from India to South Korea, where domestic growth stories, technology and AI investment, and diversified supply chains leave plenty of room for growth, says Jessica Tea, JPMorgan emerging markets and APAC equities investment specialist. She joins John Lee and Katia Dmitrieva from Singapore to discuss consumption strength across Asia — highlighted by the popularity of Labubu dolls — investing in the backend of EVs and finding returns amid uncertainty.See omnystudio.com/listener for privacy information.

The huge political and economic shifts taking place amid US President Donald Trump's global trade war, turmoil in the Middle East and the ongoing Russia-Ukraine conflict is putting geopolitical risk front and center of investment decisions. JPMorgan, for instance, has just launched a Center for Geopolitics, as companies become more reluctant to simply rely on business models and financial experience.Marko Papic, chief strategist at BCA Research, an independent research group founded in 1949, joins John Lee and Katia Dmitrieva to give his take on the consequences of such significant global changes and how investors can best navigate these turbulent and uncertain times.See omnystudio.com/listener for privacy information.

South Korea's June presidential election ended six months of political uncertainty and policy paralysis in the country. Investors are optimistic that President Lee Jae-myung, with the support of the legislative assembly, can boost the economy with fiscal stimulus and corporate governance reform. The Kospi Index has surged more than 20% this year, surprising many global investors who have until now been hesitant to allocate capital in the country. President Lee faces many challenges, however, including the threat of US tariffs, increasing competition from Chinese exports and a sluggish economy. And what does a return to democratic party policies mean for the chaebols, the scions of Korean industry? Peter Kim, investment strategist and managing director for KB Securities, discusses the outlook for Asia's fourth-largest economy with John Lee and Katia Dmitrieva on the Asia Centric podcast.See omnystudio.com/listener for privacy information.

The economic impact of US President Donald Trump’s tariffs has led to a rethink over the US dollar. After the “Liberation Day” tariffs were announced on April 2, global investors sold both US equities and the dollar, a rare event that raises concerns about the credibility of US Treasuries and the dollar itself. Moody’s downgrade of the US credit rating and the sharp appreciation of certain currencies, particularly the Taiwan dollar, against the greenback have further intensified the situation. Are we entering a period of de-dollarization? What are the implications for the regions' central banks, corporations and financial institutions – many of which are major holders of US Treasuries? And which Asian currencies could outperform following this paradigm shift? Stephen Chiu, chief Asia FX and rates strategist for Bloomberg Intelligence discusses these issues with John Lee on the Asia Centric podcast.See omnystudio.com/listener for privacy information.

A big shift in regional trade is underway following US President Donald Trump's announcement – and temporary pause – of the so called "Liberation Day" tariffs. Exports from Southeast Asia are surging, as companies around the world frontload and reroute shipments of parts and final goods such as toys and smartphones. Which countries are benefiting the most from this demand and the intensifying strategy of "China+1", how long will these high export levels be maintained, and what are the risks for consumers and companies? Katia Dmitrieva speaks with Robert Subbaraman, head of global macro research at Nomura, about the latest on the trade front. Read our story here: https://www.bloomberg.com/news/articles/2025-05-21/china-us-trade-soars-as-exporters-race-to-hit-trade-truce-window?utm_source=website&utm_medium=share&utm_campaign=copy    See omnystudio.com/listener for privacy information.

Investing in alternative assets such as infrastructure and private equity was once the preserve of large institutions and the uber rich with access to private bankers. But technological advances and product innovation have opened these markets to wealthy retail investors, creating one of the fastest-growing segments in wealth management. Many experts, including BlackRock CEO Larry Fink, refer to this trend as the "democratization" of investing. So what opportunities are out there in the private market for wealthy investors? And what are some of the risks, especially overinvestment? Steffanie Yuen, Head of Hong Kong for Endowus, breaks down the sector as she joins John Lee and Katia Dmitrieva on the Asia Centric podcast.See omnystudio.com/listener for privacy information.

In early 2021, smartphone and electronics maker Xiaomi was blacklisted by Washington, restricting its access to US technology and investors. Although this decision was later reversed, it motivated CEO and founder Lei Jun to enter China's ultra-competitive electric vehicle market, pledging to invest $10 billion over a decade. The bold move has paid off: in China, buyers are waiting up to 10 months to purchase Xiaomi's SU7, and the company's shares have surged more than 150% in the past year.  How did a manufacturer of cheap smartphones and budget appliances create one of the most desirable vehicles in China in just three years? And can Xiaomi continue to deliver on high investor expectations and stand out from its competitors with the launch of its new YU7 model this summer? Bloomberg Intelligence analysts Joanna Chen and Steven Tseng join John Lee on the Asia Centric podcast.See omnystudio.com/listener for privacy information.