♪ haidi: good morning, i am haidi stroud-watts in sydney, we are counting down to asia's market opens. shery: i am shery and in new york. welcome to "daybreak: asia." washingtonts meet in -- top democrats meet in washington over the assault in the capital and president trump's commas before and after and plan impeachment possibly this week. coronavirus case numbers are

slumming in new york. our slowing in new york. thea raises the heat on next u.s. administration, blocking mainland companies from having to follow what it calls unjustified foreign's nest laws. -- foreign business laws. haidi: new zealand on the back foot on reports of a data breach at the rbnz, but australia, looking at the start of trading in sydney. aussie shares rising toward a 10 month high. last week, closed with bank and held shares gaining, the best week since early november. we are seeing modest upside, less than 1/10 of 1% at the open. had u.s. stocks, including the s&p 500, closing at franchise, and the nasdaq outperforming on hopes that more stimulus will come through with

the democratic majority in the pretty poorite labor market numbers last week. shery: we are watching developments in the u.s.. it is resident comes final we can the white house and sources say he is planning a defiant stand despite being blocked on social media, resignations by senior aides and mounting calls for him to resign. krasny is here. what do we expect the president to do in this last week? what we hear, president trump wants to emphasize his victories as president, including a trip to the u.s.-texas border -- excuse me, the u.s.-mexico border to look at the border well-built they are over the last four years. he is supposed to go to alamo, texas on tuesday, and it is possible he could come out with executive orders against big tech. he is obviously quite livid at

having been banned from twitter and is redoubling his hope to take efforts against tech. executiveear if those orders will see the light of day. taking provocative orders against china, we had another one announced by secretary of state mike pompeo. there is definitely unfinished business. from what we understand, trump thinks he will not be subject to the 20 for the amendment, which -- the 25th amendment, which would be his cabinet moving to remove him. is in it another 10 days. haidi: as we continue to talk about twitter's actions and actions from other social media companies, we are hearing that a fintech company that handles payments for online businesses has stopped processing payments for trump's campaign website, fy cut ties with

his e-commerce and merchandise sales. what are the expectations? we are hearing democratic leadership is intending to drop new articles of impeachment. ros: exactly. we believe the articles will be presented on the house floor on monday, and a few hours after that, nancy pelosi and her top lieutenants are supposed to be talking to the democratic caucus about the road ahead. we expect to see a lot of action this week. one thing democrats are concerned about is going through with impeachment and basically the running of president-elect joe biden's first days and weeks in office with an ugly impeachment trial. so they have tactics to avoid that, they could impeach and not send articles to the senate, that's one thing they could do. there are definitely some

republicans who want to see president trump gone before the end of his term, as you said. pennsylvania's pat toomey is one of them. i think really though they are them an irony. it is unclear if anything will get decided vis-a-vis trump over the next seven to 10 days. krasny there. china is pushing against u.s. sanctions ahead of joe biden's inauguration, issuing new rules to protect its forms against what it calls unjustified rules. stephen engle is in hong kong. these may be the last days of the trump administration, no shortage of foreign policy bombshells could we had mike pompeo loving that last-minute action when it comes to taiwan, essentially for the biden administration having to deal with that. what do these new regulations intend to address from beijing? stephen: let me get to taiwan and a second because i want to address this latest batch of rules announced by the ministry

of commerce out of beijing this weekend. a new way it is beijing will counter u.s. sanctions, whether executive orders or not, from the trump administration, and whether there will be more of these, as ros just alluded to, in the waning days of the trump administration. in the last couple of years, china has retaliated tit-for-tat retaliation for sanctions with adding companies to this unreliable entities list. it has up to now been unenforceable, or they have not evoked it. they have issued new rules that basically will shield chinese firms from what beijing calls unjustified foreign laws. it allows chinese courts to punish global companies from complying with foreign restrictions. that potentially puts foreign companies in china in legal jeopardy for complying with u.s. actions.

the ministry of commerce statement basically says companies or people in china, chinese or foreign, don't need to comply with sanctions, and it allows companies to sue for compensation if their interests are damaged by such sanctions. these new rules did not name the united states by name that we know what they are implying. hong kong saysn companies with significant interest in china they need to tread carefully to avoid being subject to claims by counterparties in china. that attorney says the finance sector will be among those most affected by these new rules. turn to taiwan, the trump administration may be further challenging beijing's one china policy. week, this any other could potentially be the top story worldwide. the united states changing its definition and restrictions, moving the restrictions it has in place for decades now on its

diplomats and military personnel and other officials in the air contact and interactions with taiwan. that obviously would provoke beijing and could lead to serious deterioration of that relationship. areagain, i caution, we nine days or thereabouts away from a new administration in the united states and we don't know how biden will shape his taiwan policy, but for decades, the united states has had a one china policy and respected that. , especially with mike pompeo as secretary of state, is challenging that. here is what mike pompeo said over the weekend. a decade, the state department has treated complex research is to regulate the blood mess, service members and others interactions with taiwanese counterparts. he ended that statement by saying no more. it's the latest at trump administration to ratio -- to reshape the relationship with taiwan. the taiwanese minister said he

was grateful for pompeo and the state department beijing will not be happy with this. already they have called the impending visit this week by america's ambassador to the united nations, a final show of madness and state media is all over it, calling it a cowardly act of sabotage. we will see how it plays out. shery: stephen engle with the latest on u.s.-china ties. plenty more analysis ahead on beijing's latest moves. guests join us later this hour and we will also hear from others. for now, let's get to karina mitchell with the first word headlines. karina: global coronavirus cases now top 90 million but the trend is varying across the globe. in new york state, cases fell for a second day after reaching a record, while california's daily deaths rose to a new high.

japan has reportedly found a virus variant similar to that in the u.k. and south africa. vaccine regulators and the eu worn changing the timing of injections can weaken their effectiveness. meanwhile, three prefectures in osaka,including keio and are asking the government to declare states of emergency as cases rising nationwide. there were more than 2200 infections on saturday, just shy of a daily record. osaka recorded its second-highest number. -- air crash investigators in indonesia said the 737 crashed on saturday broke apart soon after hitting the water. some wreckage has been recovered and the flight recorder expected to be found shortly. than lions much older air 737 max plane that crashed in late 2019, a disaster that helped lead to the max's worldwide grounding.

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. ahead, the outlook for asia's economy this week, with a guest from deutsche bank. this is bloomberg. ♪ - [narrator] this is kate. - hey. - [narrator] she takes two prescriptions. kate's son jack, takes one too. kate works hard, and thought she had good insurance. but she still pays too much. that's no good. so kate downloaded the goodrx app. now she can compare prescription prices, to find the best discounts. she even beats her insurance price. good for you kate, good for you. goodrx, stop paying too much for your prescriptions. download the free app today. (announcer) do you washed pounds? stress? do you want to flatten your stomach? do all that in just 10 minutes a day

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shery: the imf says china urgently needs to contain financial risks as its economic recovery takes hold. they spoke to tom mackenzie. >> we are looking at a strong thinkry in 2020 and we it will continue into 2021. it is probably stronger than we have seen so far.

in terms of rates, i think we had about 2% of growth in 2020 and were looking about 8% next year. we had mobile risks to worry about that have to do with the pandemic and other things to work about. it is a risk balance tilted to the balance side. you pointed out there is a risk on a could see a reversal of the progress they have made in rebalancing the economy. write that down for us. helge: you see growth not as balanced as we would like to have. growth is still relying heavily on public support, mainly in the form of more traditional public infrastructure messaging. what is lacking is consumption. construction -- consumption is going up but the overall level is behind. tom: how much physical support

is appropriate, do you think this year? helge: we need a little more macroeconomic policy support, both from fiscal and monetary policy this year, to achieve rebalancing. i will make two points here. one is to make sure we don't create a fiscal cliff where suddenly support disappears that is still important. it has to be a gradual pacing out as the recovery strengthens. second, i think it is important to make sure the composition of macroeconomic support is the right one. we would want a shift from supporting traditional infrastructure spending two spending that is supportive of household incomes. tom: we've seen a number of high-profile, state backed companies that have defaulted on significant amount of money. how manageable is it for the authorities? in 2020, itates say

increases about 10 percentage points to around 130% of gdp, a high number, both in comparison to other emerging markets and economies. where pressure is likely to happen. we need to think about being careful in spacing out the support measures in place. we need to be certain to do what we can to strengthen corporate structural frameworks and take legal and practical steps so the additional reformer can be done. debateere is a continual about fx reforms. we've seen the yuan strengthen about 7%. does that provide a window for policymakers to step back in terms of control for the currency? helge: we've seen a dramatic drop in the first quarter, china did so much worse than other economies because we went into lockdown when others didn't.

changes depreciated. it reinforces what we have set in the past, flexibility is a desirable future for a large, open economy like china. it does a lot of good in terms of offering different developments between china and the rest of the world, and we would encourage policymakers to continue to move in this direction. tom: what is the imf of you terms of this push to the u.s. to delist chinese companies? what other broader implications for the financial sector? helge: while it is true many companies -- countries have security concerns, in terms of investment relations, and have raised these concerns, it is important that they are handled that doesn't restrict trade or investment based on these considerations alone.

you have to be careful, you have to be meticulous and you have to be very judicious. was the imf mission chief helge berger speaking to tom mackenzie. expects guest also china to address financial risk and development of imbalances in 2021. tuuli mcculli is with us from singapore. we are expecting trade numbers out of china but by most indicators, the expectations are the recovery and china has largely peaked. does that mean this year they can switch policy focus to addressing some of these longer-term goals of deleveraging and preventing financial risk? tuuli: good morning. be,chinese economy seems to the recovery seems to be more

broadly based know we've seen a pickup in -- number for example. in --, for example. that said, i think the economy has a way to go before policy makers are ok with normalizing policy conditions. fiscal and monetary policies remain supportive of growth for the time being. at the same time, policymakers see this as stimulating the economy and this will be part of the push over the course of 2021. haidi: i was going to ask you, given the drop we saw in december, are there still deflationary pressures when it comes particular to consumer prices or is that a temporary glitch? beli: i think it is going to a temporary phenomenon.

is deflationary territory, in november it reflected lower pork prices, pork prices responded to a rebound and supply. in december, prices probably increased slightly but it remains to be seen if the annual inflation rates could turn into positive territory. looking forward over the next few quarters, i think inflation will remain low, but the second half of the year, we will likely see inflation trending toward normal levels, by about 2% by the end of the year. shery: we also have trade numbers out of china this week and the expectation is for double-digit growth year on year for the third consecutive month. if we continue to have very strong economic numbers out of china, what is the risk we could see more tightening measures ahead of time from policymakers? at the exports

first, it is absolutely true global demand for chinese goods seems to be very solid, especially in terms of electronics and medical equipment. i do expect another strong growth figure this week. at the same week, intra-growth is a lot weaker than export growth. -- import growth is a lot weaker than export growth. it still has room to strengthen. i don't expect any significant policy tightening any time soon, at least in the next couple of quarters, because there is still some way for demand conditions to strengthen. korea,looking at south we are facing a similar situation, the rate decision this week, the expectation for no change but at the same time, another wave of infections. what are we expecting in the korean economy? tuuli: i think the bank of korea will keep these benchmark interest rates unchanged, 0.5%,

but at the same time, it's policymakers will be very carefully trying to assess the covid-19 wave on the economy. if the economy faces another slum, i think there is still policy room left that the bank of korea could stimulate the economy through quantitative easing. at the same time, inflation is not a concern for korea pit there is some -- for korea. there is some leeway. but there is concern, which is the rising level of household debt, already around 100% of gdp. it is quite a tricky situation, you have conflicting policy pools, so it's difficult to do monetary policy in this kind of environment. shery: household debt an ongoing issue. tuuli mcculli, great to have you with us, scotia bank head of asia-pacific economics. still ahead, indonesian

investigators say they have located flight records from the plane that crashed on saturday. we will have the latest. this is bloomberg. ♪ save hundreds on your wireless bill without even leaving your house. just keep your phone and switch to xfinity mobile. you can get it by ordering a free sim card online. once you activate, you'll only have to pay for the data you need starting at just $15 a month. there are no term contracts, no activation fees, and no credit check on the first two lines. get a $50 prepaid card when you switch. nationwide 5g is now included. switch and save hundreds. xfinity mobile.

♪ indonesian investigators are closing in on the flight recorders from the jet that boeing on saturday, a 737 500 with 62 people on board. it plunged more than 10,000 feet shortly after takeoff. authorities say the jet was intact when it fell into the java sea. let's get the latest from our asia transport reporter. what do we know so far? >> so far, as you said, we know it was intact when it hit the water. basically, it broke on impact when it hit the water, meaning for now, we might be able to

take terrorism off the list of what might have caused the accident. andtill do not know, finding these black boxes would whatucial in finding out happened to have the plane fall at such a high speed when it did. course, indonesia has a tragic history when it comes to aviation safety. what do we know about this? kyunghee: it is mostly a domestic operator at the moment. regionalave some sites, it is mostly domestic operator. airline,te old for an given a lot of airlines have added a lot of new aircraft in the last few years or so. there's not much we do know outsidee airline itself indonesia, but it does seem like

they have had incidents here and they are but nothing to the extent we have seen happen over the weekend. shery: and of course this comes at a time when the aviation industry is suffering from the effects of the pandemic, both when it comes to planes still being grounded and they're not being enough demand, and pilots not getting enough opportunities to fly. kyunghee: yes, that is a major problem right now and a concern for all airlines and the industry itself. airlines are doing their best to keep pilots up-to-date with areing their hours that needed to continue the certification for flying, but obviously, as you said, given the pandemic, there are very limited flights, especially on the international side. that will be a major challenge going forward. haidi: our asia transport reporter kyunghee park with the latest. us to up, our guests join

discuss beijing's latest push back u.s. sanctions. this is bloomberg. ♪

♪ shery: japanese markets closed for coming-of-age day, this after the end of the session us week at a 1990 hi. the japanese yen holding, after strengthen against the u.s. dollar and coronavirus cases continue to rise. variant of the coronavirus in four travelers arriving from brazil. news comes with tokyo and surrounding areas in a state of emergency and other prefectures seeking similar measures. our correspond has the latest. how are they adjusting to the

surge in virus cases across the country? >> good morning from tokyo. i think people are getting used to the rise in cases. we are seeing them in the thousands in tokyo, there had 200, 300 only a few weeks ago. closing earlier, restaurants and other facilities are closing. it's not as strict as it was last year when the first emergency measures came in. schools are open, for example. my son is going to school every day. but all of these other activities, play schools and playing rugby and soccer, those events have ground to a halt.

is there concerns because is not as strict as the previous lockdown, are there concerns they risk more economic pain down the path? this stage,hink at japan's numbers are high and rising, but not the level of most. a lot of the european countries. a mask andys wear there was a feeling that that would protect these activities. we go back to the days in march, a lot of restaurants and other businesses are pushing they may -- if strict measures come back. there.our tokyo reporter let's get to karina mitchell

with the first word headlines. karina: democrats meet in washington later monday to plan their response to this out on the u.s. capitol and president trump's comments before and after. nancy pelosi and her team will meet after they introduce impeachment. the motion is expected to be tabled tuesday or wednesday. plus has called on the president to step down. apple and amazon removing the social media platform parler from their services after it came to prominence in last week's storming of the capital. apple is dropping parler from the app store while amazon will no longer hosted on the cloud. parler is popular with far-right groups seeking an alternative to mainstream messaging sites. it is seeking a new host. the u.s.tate media say planning to remove decades-old --etch and's on taiwan is decades-old restrictions on taiwan is a sabotage. mike pompeo says he is ending

the internal regulations over taiwan. the u.s. ambassador to the united nations is expected to visit the island this week, the first such a visit since the time one was excluded from the u.n. in 1971. the five yearly meeting of the workers party in north korea has few headlines thus far. kim jong-un made no speech as congress debated its finances and relationship with the military. the eighth congress is expected to wind up with the announcement of new top officials before a grandiose parade. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm karina mitchell. this is bloomberg. china is continuing to push back against u.s. sanctions, issuing new rules to protect companies and what it calls unjustified foreign laws. it allows chinese courts to

punish comedies for complying with foreign restrictions. our guest joins us now. how do you imagine at this point how these rules will be enforced? >> thank you for having me. i think it's important to point out the order from the ministry of commerce does not refer to any particular foreign sanctions and in fact it does not even mention the united states. howo have to wait and see these prohibition orders will be issued and what they target. time being, we can only speculate what they might try to address. haidi: right, so can a u.s. company be penalized? how do you anticipate this will be applied? nicholas: in practice, what will happen is the ministry of commerce will issue what is called a prohibition order, which will attend if i a foreign sanction in scope.

is in process is if they breach the prohibition order, a company could be subject to a fine or a court claim in china, for a party that was damaged by the compliance. similar in theg european union with the blocking that targets sanctions on iran and cuba and this seems to be modeled on the eu statute and will probably operate similar to that. shery: what sectors could it affect the most? nicholas: the sectors most likely to be impacted will be sectors engaged in international trade. it is possible this could focus on secondary sanctions with iran, in which case a lot of services,inancial shipping, could be affected. the activities over the last few weeks with the united states and

chinese company's, we are focused on financial markets to see how these orders might target these sanctions. shery: given we have little detail on what sort of sanctions of these rules will target, what can companies do now? well, for the time being, all accompanied company can do is pay close attention, look for additional guidance from the ministry of commerce or the issuance of prohibition orders so they know specifically what is going to be addressed. i think any company that is trying to decide whether to comply with a foreign sanction, including u.s. sanctions, should consider the potential impact on its counterparties, particular if impacts will be -- particularly if impacts will be felt in china. haidi: do you think the business environments for these companies will get easier or harder under a biden administration and their approach to china? nicholas: all indication so far

are the biting and ministration is going -- biden administration is going to keep a lot of the policies we've seen, especially with respect to hong kong and other issues with respect to china. this new order probably will complicate the environment to the extent the prohibition orders that are issued later refer to these types of sanctions. that might mean some company's have to choose between one and the other. we saw something similar in the european union with respect to iran. that is rbc going to have to be something companies consider -- that is obviously going to have to be something companies consider carefully. shery: we have breaking news, the u.s. house of representatives will bring impeachment legislation to the floor, according to speaker nancy pelosi. she is also saying president trump is an imminent threat to the constitution and democracy, and the house will vote on the measure seeking president trump's removal under the 25th amendment. in a statement, she is saying

majority leader will request unanimous consent when it comes to bringing out the rest can resolution, calling on the vice president to mobilize the cabinet to mobilize the 20 for the amendment, although we have heard -- the 25th amendment, although we have heard vice president pence has been dismissive of using his authority to drive president trump out of office. we've also heard one advisor close to president trump saying this democratic consideration of impeachment could be a political gift to president trump. there's been criticism that all this talk of impeachment or removal from office could make it donald trump a martyr to his base. for now, we are hearing the u.s. house will bring impeachment legislation to the floor, according to speaker nancy pelosi. next, a company has just listed on the nasdaq. the founder and ceo choices -- joins us to discuss that and the prospects for its highly

customized cancer treatment. this is bloomberg. ♪

shery: shanghai-based biotech strongacell enjoys a start on nasdaq, shares around 32%. gracell continues the trend of high demand for biotech firms. one of the busiest and best

performing sectors for ipo's and 2020 p let's discuss the -- in 2020. let's discuss the outlook with founder and ceo william cao. great to have you with us, tell us about these cancer therapies you are working on and how close these to making cutting-edge therapies available to the public in a more affordable fashion? william: thank you for having me. the starrapy has been since2016, commercialized 2017 and 2018 for late stage relapse, refectory, especially --atology cancer, laconia leukemia, etc. it can bring complete remission to patients at a range of 50% to

70%. that is the hope and where we are. we come in with a novel solution to end or greatly improve the process of development. right now, because it is a personalized medicine, you take a blood cell from the patient returner a month or two, genetically engineered cell therapy to the patient. the waiting period is too long, some patients die, some patients progressed to the next stage. we came up with the next day manufacturing technology called fast car, and it will shorten the time and let patients daysve the therapy in 10 after quality control tests. most importantly, the drastic reduction of the cost of goods out toable a reach

bigger patient basis, so we are excited about that. shery: let's talk about the listing itself. why did you decide to go to the nasdaq, especially at a time when we are seeing hong kong be a little more welcoming to biotech firms, and also when we have escalating u.s.-china tensions and the threat of delisting of chinese companies even? william: yes. this listing, nasdaq come it is a -- nasdaq, it is a strategy agreed by the board in q2. we see there is no specific sign this will slow down for bio medicine companies. it may affect other industries but for bio medicine, we believe new technology for new medicine should be shared by all of the markets. we think any country would be let the newough to technology benefit their people.

is thereour assessment is no specific sign it will slow down for the biotech industry. so that is why. , ourther internal reason investors are international areestors, and mostly u.s. investors, and secondly, our technology has a global play. we believe moving to a stage like nasdaq will raise our visibility and maybe credibility , so that will be attracting talent and also there are a lot of benefits to being on the nasdaq. haidi: just further to the first question, how far away are we from singapore ability when it comes to car-t treatment -- how far away away from seeing affordability when it comes to car-t treatment? globally, but specifically in the chinese market and we see

the health care system and nature of the demographics that drug on affordability has -- ability has become a major social issue? along.: this has come overall, the company was founded -- this is one of the key -- we cannot imagine $400,000 per injection in the u.s. for car-t therapy. it is unimaginable for the rest of the world. it was one of the company's founding missions. ours is the lowest possible cost. too far away to affect the pricing, but when we drive down the cost so much, it is a fraction of the cost of the united states and makes it

affordable foreseeable. but we are not focused on china markets. we could find a solution for china markets, it would be a solution for the global markets. time, you seesame chinese biotech players with these technologies, including car-t therapy. there are some new players in the field now in the chinese market, do you see a period of consolidation? william: it is happening. car-t companies a few years back. we know it is happening, consolidations or a company will close down. we know that and we are a highly differentiated company. in this particular biotech field, technology is the key, innovation is the key. shery: not just innovation but

what about looking at opportunities to license your technology to other pharma in the world? william: it is happening, there's some conversation ongoing. we are looking forward to some a partnership to unload our development burdens because we have such a long pipeline and it is just more cheap. to speed up, to provide drug to the market, we need help. haidi: what licensing ambitions you have with the west and does it worry you these ongoing u.s.-china tensions may prohibit a company like yours and being able to reach licensing agreements with the u.s.? license we have struck deals and we see interest inbound as well as our outbound interest. it has all been happening.

a letter of intent has been signed. licensing from other thes, taking our technology broader markets, i don't see any sign it will be prohibited by perhaps the chinese government. we are not seeing the signs. have andes, we established u.s. presence. again, we've not seen examples in the biomedicine field that will impact dealmaking. haidi: william, great to have you with us. gracell biotechnologies ceo and founder, william cao. tune into bloomberg radio to hear more from the days newsmakers and get analysis from the daybreak team. we are broadcasting live from our studio in hong kong and you or listen via the app,

bloombergradio.com. we have lots more ahead. this is bloomberg. ♪

♪ chinese ev nio is upping the ante against test on the mainland. they are launching an electric car with what could be the world's longest driving range.

the ceo told us what he thinks it will not be in competition with the model three for market share. et7 is our first self-driving car. it sufficiently shows our capability in autonomous driving and is our first sedan in mass production. the pricing of this is saying -- sedan is around 70,000 u.s. dollars after subsidy -- before subsidies. almost the same as a tesla model three. are you comfortable with the pricing at this level? we were always very clear about our target user group. the price of our et7 is similar to the best selling midsize or full-sized sedans and china, mercedes-benz. their sales numbers are about 10,000 cars per month.

our strategy for the chinese market is to provide better products and service at a similar price of gasoline cars. we of course believe as an autonomous car, it is worth the price as the best vehicle in a premium market in any aspect, from every detail of design, internal space to service. launch, manyr the from our user community and media think the pricing is probably a little low. the competition obviously with tesla continues to heat up. do you see the et7 as putting you and nio in a different class? it is not a car competing with tesla's model three. if comparisons are to be made, it's more of a rival to the

model s. competitiveery based on this market position. tom: in terms of deliveries more of --y for nio, into some in december, the numbers were very good again. you see that pace of growth continuing this year? believe i of course china's ev market will keep growing this year. we are prepared for such growth. china's ev market had a big change last year. percentage of personal purchase has been increasing, which means ev has become a rational choice for many chinese consumers. we think it is very positive. hasre very confident nio room for growth and terms of our market segment. can you update us on your

international expansion plans? what are your priority markets and what is the timeframe we are looking at? plans towe have clear enter the european market this year. we will gain experience from a specific country and region to understand how to meet the needs of local users, how to introduce our community culture to different countries. from this perspective, we still have work to do. haidi: the nio ceo speaking exclusively to tom mackenzie. a quick check of the latest business flash headlines. three top american banks to remove some hong kong business products. 500 structured products will be affected. the hkex insist the market will not be affected. toy are working with issuers

ensure an orderly delisting but saying it will not have an adverse impact. group is organizing under a holding company at the request of chinese regulars. tey will move to a new into as aant as the -- with ant legal parent. for improvement in capability. a decision is due in about two weeks. they: we have an alert on bloomberg, south korea's trade numbers for the first 10 days of the month coming in, a fall of 15.4% for exports year on year. the daily average, again a 5.8%. imports down 22.9% year on year. a little disappointing but we had expected a bumpy road given we are seeing virus resurgence across partner company --

partner countries. not dampening sentiment in the market. check out this chart on the bloomberg. the outperformance of korean stocks when it comes to the global benchmark last week, by the most in 12 years. we are headed to the market open in south korea, japan away on holiday. this is bloomberg. ♪

shery: welcome to daybreak asia. i'm shery ahn. haidi: i'm howdy stroud-watts in sydney. south korea has just opened for trade. top democrats me in washington today over the assault on the u.s. capitol and president trump's comments before and after. nancy pelosi confirms a new impeachment push possibly this week. china hits back at u.s.

sanctions, issuing new rules on justifying foreign rules. ends yearsepartment of distractions. we focus on the outlook for the mainland. at the event in shanghai. from diplomatic rivalry to the fight for car buyers, chinese electric carmaker nio launches its first model aimed directly at tesla. let's take a look at how we are faring so far in this asian trading session. it is a holiday session. japan stocks are on holiday for the coming-of-age holiday. we are taking a look at a downside when it comes to trading in sydney. others stocks had hit a 10 month high on friday. the aussie dollar on the back foot. 77 .25. a little bit of a reversal when it comes to this bearish dollar trend. againstar has gained

every single currency pair until now. that weot surprising are seeing a little bit of weakness in the korean you one again. not only the strongest u.s. dollar but the treasury yield zapping appetite for risk again. at a timeean yuan when we have the kospi pushing toward record highs. information tech leading the gains. we have export numbers for the first 10 days of january. disappointing a little bit. for more, we are joined by mark cranfield in singapore. let's start with korea because we have the kospi. this gtv chart on the bloomberg showing the spectacular rise on how the rsi is at the highest level since 13 years. where do we go from here given that we are expecting a pump you ride when it comes to crucial exports. not to mention that although the

korean yuan is weaker, we have seen seen every constraint. >> korea is going to be a good indicator because asia because the start of the year has gone off with a banning for equity markets across the region. the kospi was the best performer. there are some fears some of this momentum is going too far, too fast. if we get a sudden reversal in anything, the kospi will be one of those which is most vulnerable. foreign money seems to have come a little late to the party in karina -- in korea. if you look at some of the reasoning why people were buying specific stocks, it was more like this is going up so we should buy it. fundamentals seem to have going out the window for the time being. that is always a warning signal that some of this is not on a solid footing. people will be looking for any sign of retail sales in perfect

-- in particular. off, see the cost become that could be a signal for other markets in asia to do the same. people will be looking for turning points. the rise last week in treasury yields is beginning to be one of the things people take seriously. the higher u.s. yields might be here for a wild. that is a cross asset signal that maybe things are going a little too far for the time being. haidi: that yield trajectory is calling into question this bearish dollar narrative as well. >> certainly the dollar is --ting a little support from the australian dollar and the new zealand dollar are two of the leaders in that respect. so far, it is relatively mild. certainly emerging-market currencies will be most vulnerable if dollar yields stay high. usually the place where we get the biggest reaction will be in some of the emerging market places.

asia may be a little more insulated. particularly latin america, they will be very conscious of rising u.s. yields. the bigger picture for the u.s. dollar is any strength is going to be fairly temporary because it is short-term yields which are the biggest driver of the direction of the currency, not the long-term yields. u.s. short-term yields are not going anywhere. the fed is committed to keeping rates near zero for a long time. any dollar rallies will be relatively brief. after a big selloff for the dollar going into the end of last year, there is a risk we will see some correction. shery: does that mean we will continue to see the support for commodities? it seems like we are seeing a commodity super cycle at the moment. >> certainly there is optimism because people expect 2021 is going to be a better year for growth. that is helping to fuel commodities. there is also a lot of speculation if you see some of

the day-to-day changes in certain metals and other parts of the commodity complex. it has become quite frothy. that is a lot of hot money is chasing commodities because they can see the chance of some quick gains. the same as with equities, we could see some quick reversals. gold was an example toward the end of last week. we sold old come off quite hard. that was responding mostly to the rise in treasury yields. that could be a warning -- copper is another one. that look stretched on the top side. there are a few places in the commodity space where hot money has gone a little too far and there could be some abrupt changes of direction if treasury yields stay high over the next few days. .aidi: mark cranfield you can follow more on the live blog at bloomberg. market run down

in one click. you can get exactly what is affecting your investments at any given point. we have some breaking news. goldman sachs saying they will be pausing political contributions. his comes on the back of j.p. morgan chase saying it is political action committees to republicans and democrats for the next six months. we have seen wall street and a number of these financial institutions scramble to try to make some of these policy changes in the light of the capital riots we saw last week. we are hearing goldman sachs will stall political contributions as well. karina: top democrats say they will bring impeachment legislation to the house seeking to remove president trump under the 25th them admit. the move comes in -- 25th amendment. there is no timetable yet for the democrat cheaper web.

-- no timetable yet. it is not clear of any impeachment will be sent to the senate. apple and amazon are removing the social media platform parler from their services after it came to prominence in the storming of the capital. amazon will no longer hosted on the cloud. it is popular with all -- with all right groups. it is key -- it is seeking a new host for its platform shared chinese media says the plan to remove restrictions on interactions with taiwan as an act of sabotage. the secretary of state mike pompeo is to end the state department' internals regulations on taiwan and the u.s. ambassador is set to visit the island this week. the first such trip since china was excluded from the u.n. in 1971. three prefectures in japan

including kyoto and osaka are asking the government to declare state of emergency as virus cases rise nationwide. kyoto says osaka recorded its second-highest number. japan has tightened border controls requiring travelers to submit a negative test within 72 hours of flying. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm karina mitchell. this is bloomberg. shery: coming up, a full slate of guests from the ubs greater china conference. tom mackenzie is at the event in shanghai. who are you speaking with today? m: we have some excellent interviews lined up for you today. we are going to start with the chairman of ubs securities. we are going to be getting an outlook for bond inflows and equities.

we will look i got the year of 2020 and how well the business did. we are going to be talking to the advisor of the pboc. we are going to be discussing financials with the head of research for financials at ubs. onare going to get outlook china's economy. lots to look forward to. this is bloomberg.

tom: welcome back. i would like to welcome both our bloomberg tv and radio audiences. annualkicking off its greater conference in shanghai. this year incorporates a virtual element as top is in is and

policy figures come to discuss china's growth prospects. joining us exclusively is the ubs securities chairman. it is always a pleasure to talk to him. is a lot a dispute about how fast reforms are going in other parts of china's economy. in the financial sector, they are real. you are at the coal phase. how thea brief recap of business for ubs performed for china in 2020. which parts of the business did particularly well in which areas would you like to perform better? >> to pick up where you left, because of the accelerated opening of the chinese capital markets to foreign investment and capital, we have seen last has been relatively strong for both the asian market stock,ng the shanghai

there have been several hundreds listed across shanghai and now shenzhen. china under the registration system, which is work into what is practicing in hong kong and new york. we have seen a returning of the chinese listed adrs to hong kong markets. we are still seeing not too small number of private sector companies pursue the u.s. listing. we played in all those different flows. we are leading banking and ipo's. we have seen that part of the business doing well. marketto the second because of the relaxation of rules, foreign capital coming to china, investing onshore has been easier. we have seen consistently a stronger flow to china. we anticipate china more willing

to open capital outflow gradually. .e have seen pickup that is the area we see we will probably pick up in the new year. tom: that is interesting. i guess a strong yuan is important for calculations. hundred 35 billions of inflows into bonds comes in september of last year. equities, about 155 billion. inflowsyour outlook for into bonds and equities for this year? >> we see relatively stabilized forecast of the r&b exchange-rate -- of the renminbi exchange rate. i thank you will see a continuation of the inflow into the chinese government bonds. and also company bonds. this is where you offer international investors a reasonable yield on the standard

alone. this is one thing. the other thing is continuation of the flow into the chinese equity market. it shall continue into the new year because of the continuation of the percentage in certain indexes globally. the chinese company on the whole has been doing well. the chinese economy recovering sooner and a lack of the sector playing really well. it will be reflective in a large number of companies forecasting a big earnings jump of 2020. you will see a continuation of those inflows. tom: you did talk about outflows. i believe that is the first time you have talked about outflows of since we have spoken to you. what is the significance? how comfortable are policymakers here with allowing greater outflows and what are the opportunities for businesses like yours? >> there is a genuine demand of

the chinese institution and chinese wealth population to pursue global diversification, geographic or asset classes, what have you. with that kind of genuine demand growing stronger and a relatively stable yuan, there is less of a concern on the regulator side to say maybe now is the time to relax a little bit. you have the new cutie i being given out. we were one of the recipients. with those kind of relaxations of the policies side, you see the genuine demand be more likely to be satisfied in 2021 as opposed to the more recent past where the exchange rate was in question and the yuan was weakening. going forward, the trend is clear. china does want to see the two-way capital flow. china does want to see international investors see there is no reason to handed

them from leaving any time any way freely. from that standpoint, the free flow of capital or partial relaxation is kind of happening shared tom: you have been a beneficiary of the strong ipo pipeline we saw last year. what is your outlook for ipo's in 2021 and to what extent is the financial decoupling between the u.s. and china proving a catalyst on the mainland and hong kong? >> the decoupling benefits shared there will be -- the benn act -- the decoupling benefits. as opposed to going straight to the u.s. as the one and only choice. the decoupling also puts pressure on the listed adrs to return to hong kong and to shanghai and shenzhen in the next year or two. i the same time, i would still say there remains some number of chinese private sector companies who may not be too sensitive or

who still may see the u.s. market as a more natural home for their listing. we will continue to have those businesses in our pipelines. we will play in all three locations. domestic, hong kong and u.s. listing. tom: wealth management is another big part of the business for ubs. what is the progress there? aum target for wealth management? >> wealth management is our group's premier and our first and foremost business. we are the global number one wealth manager. in china, we have been long setting our should goal to expand our onshore wealth management business on the back of an exceptionally strong global presence and the aipac wealth manager. we have seen some very good progress being made, especially in 2020. on the back of a strong ib business, on the back of a

strong asia market performance. ,e have seen growth in aum growth in client and investment activity last year already. i would like to see this trend continue. we are confident in the year 2021. there is more room for chinese wealth, ultra high net worth to freely move part of the asset offshore and the bulk of the asset shall remain onshore and we are still looking for more attractive investment opportunities mystically. we see a lot more growth. tom: you have 51% control of the business. are you interested now in taking full control? many of your rivals are starting that conversation should we are -- that conversation. >> we are always looking at what is allowed policy wise. we are costley reviewing the situation with our fellow chinese partners. we enjoy the partnership we have had in the past. we will update you when there is a development.

tom: what is the timeframe? >> we look at it constantly. we will look to potentially increase the possibility of that and reviewing with our shareholders. tom: would you look to a joint venture around asset management? >> we are hoping -- we are hoping -- we are open for all business potential of finding the right partner, doing the right partnership deals in china in order to pursue growth. tom: chairman of ubs securities here in china at the greater china ubs annual conference. thank you very much indeed. haidi: we will get more from the ubs greater china conference ahead including from the head of financials research. plus, a peking university professor will be joining us later. this is bloomberg. ♪

holiday,pan is away on but south korea trading. the cost be seeing a record highs stance of leading the gains more than 4% after finishing at a record high last week. we had the recovery in the membership market. saw aht supply and we surge in earnings for samsung. that has led those gains. the cost beginning to percent at the moment. the korean yuan under little bit of pressure given the strength dollar..s. here in the u.s., top democrats saying they will bring impeachment legislation to the house, seeking to remove president trump under the 25th amendment. let's cross to our deputy managing editor in d.c. what is the motivation here of the democrats doing this again and we are talking about impeachment charges, the second one in the last two years. do they risk having some

impeachment fatigue by the public especially on the focus should be on the incoming biden administration. >> basically for the democrats led by nancy pelosi, they feel of the events that happened in the capitol last wednesday, the violent mob that starve into the capitol building, the armed people who entered the house and senate, a very tragic situation, cannot go unanswered. the impeachment is aimed at that and they believe there may be some support from republicans but certainly democrats from nancy pelosi to alexandria ocasio-cortez. as pelosi says, the ongoing assault on democracy has intensified it needs to be addressed. that is what is behind this. haidi: we have also heard from the house majority whip talking

about the timing and saying potentially, to try and give president biden a clean slate for his first 100 days. to delay sending the articles of impeachment for the senate? >> that was from jim clyburn earlier today. there is concern in the biting camp that if you went straight into a biden administration, you would have a messy impeachment trial in the senate, that could push aside all of his policy objectives at a time when he has just won a majority in the senate. what clyburn said is democrats could pass impeachment or vote on impeachment and then hold the articles basically, not send them on the senate for something like 100 days or more. at a time of their choosing, send them onto the senate at which point a trail could take place. that would be a compromise that possibly could be brokered between pelosi, chuck schumer and the biden administration.

shery: where is the american public and all of this especially when it comes to the events we saw last week? >> we have seen a little bit of polling so far. i did see a reuters poll over the weekend that showed a definite majority of people believe president trump was the one who incited the right at the capitol last wednesday and he should be removed from office. the percentage of people saying that was higher for example than those who voted for democrats in the presidential election. of people plurality who believe trump would be well removed from office at this point. however, that is far from a unanimous view and a lot of republicans would be dead set against it. we still have a long way to go. haidi: our deputy managing

editor in d.c. coming up next, china pushes back against u.s. sanctions. new rules meaning the government can prohibit the application of foreign laws. details ahead. this is bloomberg. ♪

>> this is daybreak asia. i'm karina mitchell. global coronavirus cases have topped 90 million. varying across the globe. a new york state cases fell for a second day while california has a new high and japan has found a virus variant similar to the one in the u.k. and south africa. faxing regulators and e.u. warned that changing the timing of injections can weaken their effectiveness. in crash investigators indonesia say the boeing 737 that crashed saturday broke apart when it hit the waters after takeoff. the site has been located in

some records recovered but the flight recorder is expected to be found soon. the air 737 500 jet is much 737 max plane that crashed in 2019, a disaster that led to the max's grounding. the reserve bank of new zealand and is investigating a potential hack that may have threatened personal information. the attack has been contained but the nature and extent of the snformation threatening i still being assessed. it may have included commercial and commercial data, adding the third party file sharing service has been taken off-line. a meeting of the workers party of north korea has now run longer than the last one in 2016 with kim jong-un being given a new title. he has now the general secretary of the workers party. he attended at the weekend and as the congress debated finances and its relationship with the military. the congress is expected to wind

up with the grandiose parade through kim il-sung square. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. i am karina mitchell. this is bloomberg. asia are seeing broughtly markets -- an explosive first week of trading into the new year. the ca kospi continue to push higher. this has just been an explosive market. 120% gains since the low point of 10 months ago. that doesn't look like it is stopping. we are seeing a pullback, concentrating and sitting. two sessions of gains after trading the highest and 10 months on friday. 1.6^.tocks also up by and we have a public holiday in japan. no trading in japanese equities today as they are closed before

the coming-of-age holiday. we are also watching price actions for the dollar. the index -- kiwi dollars the biggest beneficiary of the dollar weakness. china is contending to push back against u.s. sanctions ahead of joe biden inauguration issuing new rules to protect its firms from what it calls unjustified foreign laws. stephen engle is hong kong. what are these news regulations? -- these new regulations and how they could be applied? heard fromat we have the ministry of commerce in a statement over the weekend is that basically china needs to respond and they feel they need to respond to these various sanctions over against chinese companies like in the services like we chat or huawei. before now they have used the unreliable entities list but they have not invoked those

powers they bestowed upon themselves yet in retaliation. now what they are doing is taking a different tack. they are going to shield chinese firms from what they have called unjustified foreign law, aka sanctions from the united states. they have not named the united states by name, but they are there to counter those sanctions. it allows chinese courts as well to punish global companies from complying with these foreign restrictions. that potentially puts foreign companies that do business in legal jeopardy for complying with u.s. sanctions. the ministry of commerce statement says companies or people in china don't need to comply with foreign sanctions. that is the new rules. that takes effect immediately. it also allows chinese businesses to sue for compensation if such restrictions are deemed and determined to be damaging. a lawyer at steptoe and johnson in hong kong told us, nicholas

turner, he said companies with significant interests in china will need very likely to tread more carefully. he says the finance sector will be the ones most affected by this. i want to mention very briefly, separate but in the legal realm of changes in china. there was a regulatory body meeting over the weekend of judicial bodies that have come out with a brief statement of the state media through the weekend platform actually in china saying that the chinese legal authorities are going to be beefing up antimonopoly laws in 2021. this comes on the heels of those november draft laws, antimonopoly laws and china that includear been -- alibaba as well as a unit of tencent which has been fined. an interesting development on the antimonopoly front. >> and another -- when it comes to the u.s. china tensions.

as we speak the national security advisor ryan o'brien commenting in a statement saying that the u.s. is examining further options to respond to china. week's,he last politicize arrest of 60 people former elected officials for exercising their political rights under the basic law is the latest of many successive nails beijing has driven into the coffin of hong kong's democracy. coming from a statement from the national security office, talking about the trump ofministration declaring -- hong kong's free and open society at the hands of china. notsteve, it really will have relations, the fact that we have more controversy over taiwan. what is the trump administration doing now? stephen: it is well those comments data set -- it is

interesting those comments. the u.s. has accused them of meddling in hong kong. the biggestviously perhaps flashpoint for u.s.-china relations in east asia. any other week perhaps this could be the world's top story. the united states essentially and according to mike pompeo, the u.s. secretary of state, will scrap all contact guidelines with taiwan. here's what mike pompeo said. "for decades the state department has created internal -- to regulate our diplomats interactions with our taiwanese counterparts. no more." it is no clear if this is a nudge to move on essential u.s. taiwan -- to unofficial sides. this would absolutely be a big issue in beijing. the trump administration in

recent months has said to help the hhs secretary alex azar in the man you see, the under secretary of state for economic -- has made trips to taiwan and also the u.s. ambassador to the united nations. expected to visit taiwan this week that would be the first such visit to taiwan since taiwan was excluded from the united nations in 1971. not surprisingly we are getting lots of response from chinese state media as well as china earlier with -- saying the trump administration and pompeo is staging a final show of madne ss. stay tuned to this story. haidi: even as we had this conversation we get the statement from the u.s. national security advisor robert o'brien talking about, blaming china again over their lack of early virus response as well as their

actions over hong kong, saying the arrests of 50 people last week in hong kong is the latest beijingsuccessive nails has driven into the caloffin on hong kong democracy. the u.s. will respond to the handling of the virus and actors in hong kong. plenty more analysis on beijing's latest move. arbitration chambers -- and control risk partner will be joining us in the coming hours. coming up next we had back to the ubs china conference where a policymaker -- from china's economy in 2021. this is bloomberg. caroline: ♪ ♪

says chinaimf urgently needs to contain financial risk as the second recovery takes hold. a guest spoke to tom mackenzie. >> we do not think there is a strong recovery at the end of 2020. we think it will continue in 2021. this is probably stronger than what we have seen. so far. think weof great -- we had about 2% of growth in 2020. we're looking at about 8% next

year. we have global risks, of course, having to do with the pandemic but with other things that happen. so, it's a risk valence that is still -- to the outside. riskyou report there's a that china could see a reverse of the progress it has made in rebalancing the economy. break that down for us. >> the key is growth that is not yet as balanced as we would like you to have. inwth is -- support name support of more traditional in public infrastructure. what is lagging is consumption. private sector consumption has recently started to grow more healthy, but the level of consumption overall is still behind the overall gdp levels. there is room for improvement. tom: that leads me to my room next question, which is how much fiscal support is appropriate do you think this you? >> we need more macro economic support both from fiscal and

monetary areas to achieve the rebalancing. i would make two points. one is to make sure we do not create a fiscal cliff where suddenly support disappears that is so important. there has to be a gradual phasing out after the recovery. and the second i think is important is to make sure that the composition of macro economic support is the righ tone. -- the right one. we would want to shift from supporting traditional infrastructure spending to spending that is supportive of household incomes. tom: we have seen a number of high profile defaults. have backed companies that defaulted on significant amounts of money. is that manageable? how manageable is that for the authorities? >> our estimates say in 2020, calls increased by 10 percentage gdp.s around 130% of

that is a high number in comparison to other emerging markets. so, yes, that is an area where pressures is likely to happen. so we need to think about being careful in phasing out the support measures in place. whated to be certain to do we can to strengthen corporate restructuring and take legal and practical steps. until the additional reform work that can be done. tom: there is a continuing debate about fx reforms that has seen the yuan strengthen 7% over the last 12 months. does that provide a window of opportunity for policymakers to step back? >> we have seen at hermetic drop during the first quarter in china did so much worse than other economies when we went into the lockdown -- others didn't. reinforces thes point that we have made in the past, that exchange and flexibility is a desirable

future for an economy like china. of good it does a lot in terms of buffering fiscal developments between china and the rest of the world. and we would encourage policymakers to continue to make progress. tom: what is the imf's view in terms of what we are seeing -- the push to delist chinese companies. what are the broader implications for the financial sectors? >> while it is true that many countries have national security concerns that somehow the fear -- of international investments raisedians and have certain concerns, it is important that you know, they are handled in a way that based onestrict trade, these considerations at all. too much. you have to be careful. you have to be meticulous, and you have to be very judicious.

chief helgesion berger speaking to tom mackenzie and tom is with us at the ubs china conference. tom? tom: we're joined virtually this time by huang yiping, the deputy dean of peking university's national school of development, a former advisor to the pboc as well. we're very pleased to have with us huang yiping. let's start than with your outlook for china's economy for 2021. we heard the imf saying they have a forecast of a percent growth this year. is that a realistic outcome for china's economy this year? >> i very much agree with imf. on't make ai d forecast anymore but if i put down a number it would be somewhere between 8% to 9%. the economy had a read -- a v-

shaped economy and at the moment -- the trend range, which is 5% to 6%. so, this year we are going to see between 8% and 9% but a realistic number is along the trend of 5% to 6%. around trend level, and that recovery from covid-19, the economic recovery we are seeing in china, there are number of economists saying that acceleration is going to see china becoming the world's largest economy more quickly than many had expected. what are the global implications of that, do you think? >> well, the reason why china is catching up more quickly than expected is not because china is accelerating its growth. but mainly because the u.s. is growing slowly. and i think that has led to more

volatility instead of the chinese. the ain emblem -- the main implication is that obviously china will continue to contribute a large part to the global economic growth. one area i always highlight that is very important for the global economy in the future is the chinese consumer spending. mentioned, we still have a little bit of problem about consumption in china at the moment, but you look back -- forwards. income is going to continue to grow. urbanization will drive consumption, which is some kind of improvement in the social safety net. 4y expectation is that our 1. billion people spending over the next decades or two will probably be the most exciting market in the world. i think china's retail sales are oneeding the u.s. and our --

average it is still growing as fast as the u.s. markets. so, i think this is one area we should forecast a lot more of moving forward. ok, professor, with your hat as a former advisor of the pboc firmly on, what do you think the pboc's response will be, the monetary policy response this year, given the forecast of between 8% to 9% growth? >> well, last year pboc maintained the so-called noble monetary policy. they did not really go to the extreme like the ecb or fed. this year if growth recovers as expected and we all know there are a lot of uncertainties around it, if the growth recovers as expected, i think the pboc policy will probably be much much more prudent compared

to monetary policies and the rest of the world. how quickly it might actually -- monetarylled easing, policy conditions in the past really pans -- really depends on data. i do not really have a fixed expectation of what pboc will do. two things i think are very clean. -- very clear. very conscious about maintaining strong growth in china, and the numbers, they are very reluctant of getting into a very excessive monetary policy conditions. my sense is we might start to see some tightening of monetary nd extent isa time a very difficult to predict at the moment. tom: ok. is the pboc comfortable with the yuan at these levels? is there a line in the sand when it becomes too strong for policymakers? reallyar, pboc hasn't

intervened in the fx market, but thee all know, china has advantage of freezing exchange rates. we cannot really say they will never intervene, but my sense is, the policy goal is to increase the flexibility and the tolerance -- of the exchange by the pboc or the broader chinese authorities have significantly increased. and i expect that to remain so in the future. tom: you are on the board of ant group, professor. what is the outlook for ant group? how challenging are there regulatory crackdowns we are seeing in china? >> i'm not actually in the position to comment on that specific issue on behalf of of ant group. what regulators

are doing so far, regulating the -- financial industry is probably in the right direction, and we all know digital finance chainse a revolutionary in china, especially in the areas of financial inclusion. but i think we all would agree that financial transaction should be regulated the same way as oil and financial transactions -- all other financial transactions. tom: just a last one, professor. your views on the decoupling we have seen in the capital markets. it is accelerating in the last few weeks. is the genie out of the bottle now? >> you're talking about a decoupling of the capital markets between where? tom: between the u.s. and china. >> oh. well, i think decoupling would be very unfortunate, and i agree to the imf comments. this is at the international

capital market in the u.s. and the center of the international financial system. so, i would feel very upset if a decoupling continues. but, at the same time, i think we all realize that the capital markets outside of china in the rest of the world outside of the u.s., but also the chinese capital market is growing very rapidly. so, hopefully in the near future, there will be enough space for the chinese companies to raise capital, but decoupling in any area, trade or capital, would be very unfortunate for china and for the rest of the world. tom: professor huang yiping, thank you very much for joining us this morning. the deputy director of peking university's national school of development and a former advisor to the pboc. shery: of course we will have more from the ubs greater china

conference later. in the next hour. plus we speak to the head of financial research. this is bloomberg. ♪

a quick check of the latest business flash headlines. hsbc shareholders are going to cut their support -- the largest listed asset manager. the world's biggest publicly

traded had to run are among 15 inches to show investors backing -- according to share action. its want hsbc to reduce exposure. intel is in talks with -- about outsourcing chips. while also seen for last-minute improvements. it has prompted intel to seek other solutions and a decision in two weeks. s notype with tcmc i expected before 2023. shares mayicate tsmc jump 5% when taiwan opens at the top of the hour. a $360 million funding round for the behind china's most popular workout app. it drew investment from hillhouse capital in tencent

valuing it at $2 billion. the fitness app, which has benefit from state home exercise during the pandemic, could seek a public offering as soon as this year. our market coverage continues looking ahead to the start of training and greater china. this is bloomberg. ♪

>> it is 9:00 in beijing and here in shanghai where we are live at the china conference, welcome to" bloomberg markets china open" i'm tom mackenzie. your: we are counting down first session of the week, our top story today, top democrats set to meet over the assault of the u.s. capitol as president