China Defends Growth Model at Davos | The China Show 1/21/2026

Watch on YouTube ↗  |  January 21, 2026 at 15:44  |  1:32:52  |  Bloomberg Markets
Speakers
Jesper Koll — Chief Strategist, WisdomTree
Elizabeth Kwik — Investment Director, Asian Equities, Aberdeen Investments
Paul Chen — Financial Secretary, Hong Kong
Demis Hassabis — CEO, Google DeepMind
Sergio Ermotti — Group CEO, UBS
Satsuki Katayama — Finance Minister of Japan
Zach Cooper — Senior Fellow, American Enterprise Institute
David Chu — Economist, Bloomberg Economics
Juana — Senior Global Business Reporter, Bloomberg
Stephen Engle — Chief North Asian Correspondent, Bloomberg

Summary

Bloomberg: The China Show focused on a swift reversal in risk sentiment after Japan's JGB selloff and geopolitical tensions over Greenland at Davos. Japan's finance minister tried to calm the bond market, while Monex's Jesper Koll argued Japan is normalizing and sees higher JGB yields and a stronger dollar-yen. China defended its growth model at Davos and announced new loan incentives; Aberdeen's Elizabeth Kwik stayed positive on China tech/AI and selective consumer pockets. Hong Kong pitched itself as a safe haven, UBS's Sergio Ermotti warned against diversifying away from the US and dollar, and Google DeepMind discussed AI competition.

  • Japan's finance minister sought to calm investors after a sharp JGB selloff, and JGB yields stabilized somewhat.
  • Monex's Jesper Koll sees Japan normalizing, expects 10-year JGB yields toward 3.5-4%, and targets dollar-yen at 175-180.
  • China defended free trade and its growth model at Davos and unveiled a $72bn loan guarantee facility for SMEs.
  • Aberdeen's Elizabeth Kwik favors China tech/AI and local semiconductors, with selective consumer pockets such as pet food and luxury.
  • Hong Kong's Paul Chan promoted Hong Kong as a safe investment haven with policy predictability.
  • UBS CEO Sergio Ermotti said betting against the US and dollar is dangerous because of US economic and innovation strength.
  • Google DeepMind CEO Demis Hassabis discussed AI competition, saying Chinese AI remains behind the frontier and Google's position was underestimated.
  • Trip.com drew regulatory scrutiny in China, while a report on a Taiwan conflict outlined high costs for Beijing.
Ideas
Jesper Koll Chief Strategist, WisdomTree 7:00
JGB yields head toward 3.5-4%.
Jesper Koll argues Japan is normalizing after decades of zero rates, with steady wage gains and 4-5% nominal GDP growth. He says the neutral policy rate should be 2.5-3%, so the JGB market is only beginning to price normalization, and no short-term BOJ intervention can prevent 10-year yields from moving toward 3.5-4%.
Japanese government bonds HIGH
Jesper Koll Chief Strategist, WisdomTree 13:25
Dollar-yen targets 175-180.
Koll expects dollar-yen to reach 175-180 because the US economy is very strong and the Fed is unlikely to cut rates, while the BOJ remains behind the curve. He favors the dollar for the next 6-9 months.
USD/JPY USD HIGH
Elizabeth Kwik Investment Director, Asian Equities, Aberdeen Investments 30:00
China AI tech keeps leading.
Kwik says China tech, especially AI-driven tech, continues to see strong growth and innovation, is a national priority with policy support, and the government wants to use AI to transform traditional industries. She sees applications and platform companies as ways to play it.
CQQQ HIGH
Elizabeth Kwik Investment Director, Asian Equities, Aberdeen Investments 30:23
China semis localize rapidly.
Within China tech, Kwik highlights the local semiconductor industry as going through extremely rapid localization, making it a distinct growth area supported by policy and AI demand.
Chinese semiconductor industry MED
Elizabeth Kwik Investment Director, Asian Equities, Aberdeen Investments 31:09
China consumption remains challenging.
Kwik says China consumption remains challenging: macro, retail, and CPI data are mixed and the property-led wealth effect is hard to replace, so investors should be selective rather than broadly exposed.
CHIQ MED
Elizabeth Kwik Investment Director, Asian Equities, Aberdeen Investments 31:21
China luxury premium holding up.
Kwik says that within otherwise difficult China consumption, luxury and premium segments are holding up relatively well, making them selective pockets of growth.
China luxury/premium consumer sector LOW
Elizabeth Kwik Investment Director, Asian Equities, Aberdeen Investments 31:27
China pet food earnings strong.
Kwik points to China pet food as a niche with a structural rise in pet ownership; companies there are reporting very good earnings and revising up their outlooks.
China pet food sector MED
Elizabeth Kwik Investment Director, Asian Equities, Aberdeen Investments 32:28
Innovation-led China sectors growing.
Kwik sees strong growth and stronger earnings in parts of China industrials, renewables, advanced manufacturing, and pockets of healthcare, especially innovation-led companies.
China advanced manufacturing KGRN KURE MED
Paul Chen Financial Secretary, Hong Kong 38:46
Hong Kong safe haven.
Paul Chan argues Hong Kong offers an excellent alternative for investors seeking safe havens with good returns, policy consistency, and predictability, and he is optimistic on renewed IPO momentum even as the city issues bonds for Northern Metropolis.
EWH HIGH
Demis Hassabis CEO, Google DeepMind 77:39
Google AI position underestimated.
Hassabis says Google has restored state-of-the-art AI with Gemini 3, has deep research history and massive product surfaces, and is now seeing the fruits of organizing AI across its products; he argues people underestimated Google.
GOOG MED
Sergio Ermotti Group CEO, UBS 88:12
Don't bet against US, dollar.
Ermotti says diversifying away from the US and the dollar is a dangerous bet because the US remains the strongest economy with the highest level of innovation; any major allocation should at most adjust US weights, not abandon them.
US assets USD HIGH
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This Bloomberg Markets video, published January 21, 2026, features Jesper Koll, Elizabeth Kwik, Paul Chen, Demis Hassabis, Sergio Ermotti discussing Japanese government bonds, USD/JPY, USD, CQQQ, Chinese semiconductor industry, CHIQ, China luxury/premium consumer sector, China pet food sector, China advanced manufacturing, KGRN, KURE, EWH, GOOG, US assets. 11 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Jesper Koll, Elizabeth Kwik, Paul Chen, Demis Hassabis, Sergio Ermotti  · Tickers: Japanese government bonds, USD/JPY, USD, CQQQ, Chinese semiconductor industry, CHIQ, China luxury/premium consumer sector, China pet food sector, China advanced manufacturing, KGRN, KURE, EWH, GOOG, US assets