China's Central Bank Hints at New Policy Framework | The China Show 6/17/2026

Watch on YouTube ↗  |  June 17, 2026 at 06:20  |  1:32:19  |  Bloomberg Markets
Speakers
Felix Wang — Managing Director, Global Tech Research, Hedgeye Risk Management
Carlos Casanova — Senior Asia Economist, UBP
Stephanie Leung — CIO, StashAway
Anthony Stevens — Bloomberg Market Producer

Summary

Ahead of Kevin Warsh's first FOMC meeting as Fed Chair, Asian markets consolidate with Brent crude below $80 after the U.S.-Iran peace deal. The show features a sole short call on Chinese AI firm Zhipu, a view that the Fed will not hike and will eventually cut, a call for rotation from tech into small caps and gold, and breaking news on China's PBOC hinting at a new monetary policy framework focusing on the overnight reverse repo rate.

  • Brent crude falls below $80 on U.S.-Iran peace deal draft and Hormuz Strait reopening
  • First FOMC meeting under Kevin Warsh; market pricing a hike, but UBP sees no hike and Q2 2026 cuts
  • Hedgeye's Felix Wang is the only bear on Zhipu, citing DeepSeek's price war and upcoming lockup
  • StashAway CIO Stephanie Leung favors rotation into U.S. small caps, equal-weight S&P, and gold
  • BofA survey shows fund managers still in 'boom' phase on AI, with chips the most crowded trade
  • PBOC governor hints at shifting policy rate focus to overnight reverse repo, improving short-term liquidity
  • Indonesia policy uncertainty and rupiah pressure highlighted amid inner-circle scrutiny
Ideas
Carlos Casanova Senior Asia Economist, UBP 16:13
Fed cuts to weaken U.S. dollar.
The Fed will not hike rates, will cut in Q2 2026. Market is pricing in a hike; once that reprices, the U.S. dollar will weaken.
UUP MED
Felix Wang Managing Director, Global Tech Research, Hedgeye Risk Management 36:11
DeepSeek price war limits Zhipu's pricing power.
Zhipu faces headwinds from DeepSeek's low-cost models (V4 Pro, 5.2) that set a price floor and steal token share, limiting Zhipu's pricing power. The upcoming lockup expiration could add selling pressure, and valuation is extreme at 87x forward sales versus Anthropic's 21x trailing.
Zhipu HIGH
Stephanie Leung CIO, StashAway 55:04
Rotation to small caps and equal-weight S&P.
The market is broadening out from mega-cap tech into other areas. U.S. small caps have outperformed the Nasdaq year-to-date and the equal-weighted S&P 500 has started outperforming the cap-weighted S&P, signaling a sustainable rotation into broader asset classes.
RSP IWM MED
Stephanie Leung CIO, StashAway 58:20
Gold is a long-term buy.
Gold is a long-term buy despite its recent correction, supported by ongoing fiscal policy, low short-term interest rates, and rising Japanese rates. It acts as a hedge in the current environment.
GLD MED
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This Bloomberg Markets video, published June 17, 2026, features Carlos Casanova, Felix Wang, Stephanie Leung discussing UUP, Zhipu, RSP, IWM, GLD. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Carlos Casanova, Felix Wang, Stephanie Leung  · Tickers: UUP, Zhipu, RSP, IWM, GLD