Is China's Regulatory Truce With E-Commerce Platforms Over? | The China Show 6/12/2026

Watch on YouTube ↗  |  June 12, 2026 at 07:36  |  1:32:31  |  Bloomberg Markets
Speakers
Anthony — Markets Reporter
Michael — Deals Editor
Jeanny — Asia Stocks Reporter
Editor — Markets Editor
Tilly Zhang — Industry Policy Analyst, Gavekal Dragonomics
Catherine — Senior Consumer Technology Analyst, Bloomberg Intelligence
Zhikai Chen — Head of Asian and Global EM Equities, BNP Paribas Asset Management
Min Min Low — China Correspondent, Bloomberg

Summary

Asian markets rally on Trump's claim that an Iran deal is near, sending oil lower and risk assets higher. The record $75B SpaceX IPO captures attention, with strong retail demand and expectations of a solid first-day debut; the liquidity reflux is seen fueling further buying in tech and SK Hynix. China's regulatory backdrop worsens as authorities publicly scold e-commerce platforms for excessive competition, threatening the 618 shopping festival and revenue growth. Meanwhile, analysts remain overweight Korea's AI chip leaders and cautious on Indonesia.

  • Asian markets surge as Trump says Iran deal is close, oil drops sharply.
  • SpaceX raises $75B in the largest IPO ever, oversubscribed 4x, with strong first-day debut expected.
  • IPO refunds seen flowing back into AI/tech names, particularly SK Hynix.
  • Beijing publicly names and shames e-commerce platforms for misleading promotions, ending the regulatory ceasefire.
  • Bloomberg Intelligence warns regulatory scrutiny will slow platform revenue growth during the 618 festival.
  • MediaTek shares re-rate as the market transitions the stock from a smartphone chipmaker to an AI play.
  • SK Hynix trading increasingly dominated by leveraged ETFs, creating systemic volatility risk.
  • Indonesia equities under pressure from macro, regulatory, and fiscal concerns.
Ideas
Anthony Markets Reporter 6:44
SpaceX IPO reflux fuels SK Hynix rally
60-70% of trading activity in SK Hynix is driven by leveraged ETFs rather than fundamentals, creating a self-reinforcing cycle of hedging and rebalancing that amplifies daily price swings. Combined with extreme implied volatility and margin financing, this dynamic poses systemic risk. In a deleveraging scenario, crowded AI winners like SK Hynix could become far more volatile than fundamentals suggest, a sign of an unhealthy market.
000660.KS MED
Michael Deals Editor 7:22
With the SpaceX IPO four times oversubscribed, about three-quarters of the subscription capital will be returned to investors. These investors, many of whom originally backed SpaceX, are likely to redeploy that liquidity into the existing tech and AI rally, specifically buying SK Hynix, which had already seen pre-IPO buying interest.
SPCX MED
Tilly Zhang Industry Policy Analyst, Gavekal Dragonomics 28:03
China regulatory ceasefire over for e-commerce
China's regulatory ceasefire with internet platforms is over. Authorities are again publicly naming and shaming companies for excessive competition and misleading promotions. This time it is more about strengthening enforcement of existing rules rather than a targeted crackdown, but it still risks undermining market confidence and could expand across sectors, creating a regulatory overhang for e-commerce platforms.
9988.HK 3690.HK MED
Jeanny Asia Stocks Reporter 41:01
MediaTek re-rating as AI chip play
MediaTek is undergoing a narrative change from a smartphone chipmaker to an AI company. Two major tailwinds are U.S. hyperscalers increasingly using custom ASICs and the next-generation AI buildout. Over half of revenue is expected to come from AI chips within two years, and with the stock up 170% this quarter but still not expensive on forward earnings, the re-rating has further to run as a fundamental story, not just momentum.
2454.TW HIGH
Zhikai Chen Head of Asian and Global EM Equities, BNP Paribas Asset Management 60:00
Overweight Korea large-cap AI stocks
We remain marginally overweight Korea, particularly the large-cap AI supply chain names such as Samsung and SK Hynix. Strong earnings revisions are anchoring valuations even after a 90% YTD rally, and there is further potential for share prices to rise as earnings momentum continues.
005930.KS MED
Zhikai Chen Head of Asian and Global EM Equities, BNP Paribas Asset Management 62:30
Indonesia equities unattractive amid headwinds
Indonesia faces multiple headwinds: a fragile macro environment, regulatory uncertainty triggered by MSCI's firm response on corporate governance, questions over fiscal sustainability, and a shrinking current account surplus that has weakened the rupiah. These factors make Indonesian equities unattractive.
EIDO MED
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This Bloomberg Markets video, published June 12, 2026, features Anthony, Michael, Tilly Zhang, Jeanny, Zhikai Chen discussing 000660.KS, SPCX, 9988.HK, 3690.HK, 2454.TW, 005930.KS, EIDO. 6 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Anthony, Michael, Tilly Zhang, Jeanny, Zhikai Chen  · Tickers: 000660.KS, SPCX, 9988.HK, 3690.HK, 2454.TW, 005930.KS, EIDO