Ray Dalio Was Right About Going In on China’s Untamed Markets
Bridgewater’s risk parity trades appear to be working very well despite Beijing’s reform campaign against a range of companies.
Maturity
Photographer: STR/AFPAs the U.S. economy roars back, is there still an investment case to be made for Chinese assets? Its economy is staging a record recovery and foreign hot money is still pouring in. But Beijing is using this rosy period to carry out large-scale economic reforms, the kind that give investors the shivers.
Giant tech companies are getting fined billions of dollars for antitrust violations. Enormous state-owned enterprises are on the brink of bankruptcy as the government insists on market discipline. Along the way, bond and stock investors are nursing their wounds from the travails of a wide range of companies, from e-commerce giant Alibaba Group Holding Ltd. to China’s largest distressed debt manager China Huarong Asset Management Co.