Xi's Diplomatic Blitz: Back-to-Back Calls With Putin, Trump | The China Show 2/5/2026

Watch on YouTube ↗  |  February 05, 2026 at 04:38  |  1:32:44  |  Bloomberg Markets
Speakers
Shihao Li — Asia strategist, CITIC CLSA
Paul Dobson — Executive Editor, Bloomberg
Lanting — Managing Editor for Asia Equities, Bloomberg
Jason Tsai — CFO, Silicon Motion
Sheng Lee — CEO, Tim Ho Wan
Paul Schroder — CEO, AustralianSuper
Yvonne Man — Head of APAC, CoinDesk
Annabel Droulers — Anchor, Bloomberg TV
Jenny — Asia Stocks Reporter, Bloomberg
Edmund Lo — China Correspondent, Bloomberg
Kim-See Lim — CIO, Public Sector Financial Institutions and Global Funds, AIIB

Summary

Asian tech shares fell sharply as investors worried that new AI tools could disrupt software and SaaS business models, triggering a rotation into value, consumer, and industrial names. Guests discussed China's spring rally favoring small caps and upstream cyclicals, while memory chip shortages supported Korean chip makers. In diplomacy, Trump and Xi held a call and planned reciprocal visits, while Xi also spoke with Putin. The show also featured company outlooks from Silicon Motion, Tim Ho Wan, AustralianSuper, AIIB, and Malaysia's economy minister.

  • Tech selloff led Asian equities lower, with software/SaaS disruption fears driving rotation.
  • China strategist favored small caps, upstream cyclicals, and tactical value.
  • Korea/Taiwan hardware and memory chip names seen benefiting from AI buildout despite selloff.
  • Trump-Xi call covered trade, Taiwan, soybeans, and plans for reciprocal visits.
  • Xi-Putin video call and US critical minerals summit highlighted geopolitical alignments.
  • Silicon Motion guided above seasonal trends on share gains and NAND supply.
  • Tim Ho Wan outlined Hong Kong expansion and 20 US stores by 2028.
  • AustralianSuper, AIIB, and Malaysia discussed US/Asia allocations, infrastructure, and AI economy.
Ideas
Paul Dobson Executive Editor, Bloomberg 5:54
US small caps, industrials, value favored.
US market breadth shows underlying optimism about the economy; equal-weighted S&P hit a record and investors are more confident in small caps, industrials, and value stocks.
US Small Caps XLI VTV MED
Paul Dobson Executive Editor, Bloomberg 8:08
Asian AI hardware enablers benefit.
Companies making equipment for data centers, power, and AI are largely in Asia and should benefit from being at the start of the buildout cycle rather than the end.
Asian AI hardware/data center supply chain MED
Shihao Li Asia strategist, CITIC CLSA 15:10
China small caps lead spring rally.
Seasonal pattern favors China small caps during the spring rally; for this year, small caps likely lead while CSI 300 lags due to ETF selling pressure on large caps.
ECNS MED
Shihao Li Asia strategist, CITIC CLSA 16:59
Upstream cyclicals gain on commodity prices.
Basic chemicals and non-ferrous metals should outperform for the quarter and year because the commodity price uptrend is real, and investors are favoring sectors with rising prices rather than deflationary pressure.
China basic chemicals China non-ferrous metals HIGH
Shihao Li Asia strategist, CITIC CLSA 31:38
National team selling likely nearly done.
National team outflows from major ETFs have reached around 60% of original holdings, suggesting they should stop selling and removing a near-term overhang for CSI 300.
CSI 300 MED
Shihao Li Asia strategist, CITIC CLSA 32:50
Tactical rotation into China property, financials.
Value is taking over growth as investors seek safety after tech's long leadership; he prefers a tactical approach and expects rotation into lower-valuation sectors such as property and financials.
China property FXI MED
Sheng Lee CEO, Tim Ho Wan 35:52
Jollibee's Tim Ho Wan expands.
Tim Ho Wan, part of Jollibee Group, is doubling its Hong Kong footprint, expanding delivery and dayparts, and targeting 20 US stores by 2028; Jollibee's operating systems make the model replicable and sustainable.
JFC MED
Yvonne Man Head of APAC, CoinDesk 49:40
Asian consumer sectors tactical buy.
In the face of tech rotation, the consumption side of Asian equities, including consumer staples, consumer discretionary, and healthcare, is emerging as a tactical buy.
Asian consumer staples Asian consumer discretionary IXJ MED
Lanting Managing Editor for Asia Equities, Bloomberg 50:53
China value outperformance driven by dividends.
China value has outperformed growth for six straight months, longer than in the US or globally, due to stretched tech valuations, low consumer valuations, and safe-haven demand for dividend-paying banks and energy.
MSCI China Value CHIX CHIE HIGH
Lanting Managing Editor for Asia Equities, Bloomberg 52:34
China power transformers win data center buildout.
China power transformer makers are unexpected winners in the global data center buildout.
China power transformers LOW
Lanting Managing Editor for Asia Equities, Bloomberg 52:51
Korean chip makers benefit from memory shortage.
Memory chip shortage is real, as flagged by Qualcomm and Nintendo, and should support bullish sentiment for Korean chip makers, especially as data center buildout continues.
Korean chip makers HIGH
Jason Tsai CFO, Silicon Motion 59:50
Silicon Motion sees multi-year growth.
Silicon Motion beat Q4, guided Q1 revenue to grow 5-10% versus normal seasonality of down 10%, is gaining share in mobile and PC, has secured NAND supply, and expects enterprise SSD and PCIe 5 products to scale into 2026-27, supporting multi-year growth.
SIMO HIGH
Paul Schroder CEO, AustralianSuper 74:11
US remains best earnings source.
The US remains the strongest source of corporate earnings and wealth creation; AustralianSuper has about 35% of its portfolio in the US and continues to invest there.
SPY HIGH
Paul Schroder CEO, AustralianSuper 75:50
Asian private equity exposure set to grow.
Private equity is a key growth area; AustralianSuper plans to raise PE from 4% to 10% of its portfolio as the fund triples, expanding in Asia via co-underwrite/co-invest with high-quality GPs, especially India and Japan.
Asian private equity India private equity Japan private equity MED
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This Bloomberg Markets video, published February 05, 2026, features Paul Dobson, Shihao Li, Sheng Lee, Yvonne Man, Lanting, Jason Tsai, Paul Schroder discussing US Small Caps, XLI, VTV, Asian AI hardware/data center supply chain, ECNS, China basic chemicals, China non-ferrous metals, CSI 300, China property, FXI, JFC, Asian consumer staples, Asian consumer discretionary, IXJ, MSCI China Value, CHIX, CHIE, China power transformers, Korean chip makers, SIMO, SPY, Asian private equity, India private equity, Japan private equity. 14 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Paul Dobson, Shihao Li, Sheng Lee, Yvonne Man, Lanting, Jason Tsai, Paul Schroder  · Tickers: US Small Caps, XLI, VTV, Asian AI hardware/data center supply chain, ECNS, China basic chemicals, China non-ferrous metals, CSI 300, China property, FXI, JFC, Asian consumer staples, Asian consumer discretionary, IXJ, MSCI China Value, CHIX, CHIE, China power transformers, Korean chip makers, SIMO, SPY, Asian private equity, India private equity, Japan private equity