Bridgewater's Exit from US-Listed Chinese Stocks Amid China Stock Market Struggles
Bridgewater's Strategic Exit from US-Listed Chinese Stocks
In a move reflective of the China stock market's ongoing difficulties, Bridgewater Associates has substantially reduced its holdings in US-listed Chinese stocks, cutting back by as much as 80 percent over the last two years. The hedge fund's most recent 13F filing reveals a total divestment from companies such as Weibo, Joyy, and Daqo New Energy.
Market Dynamics and Performance Metrics
The MSCI China Index has shown modest improvement, rising 1.7 percent over the last seven quarters, starkly contrasting with gains seen in US and other emerging markets, where indices surged between 34 and 52 percent. Highlights from Bridgewater's adjustments illustrate a growing caution towards Hong Kong stocks and related equities.
- Bridgewater's stakes in Li Auto and Yum China saw reductions up to 45 percent.
- Bridgewater retains a cautious approach despite Chinese assets being deemed attractively priced.
- The fund's overall value reached US$19.2 billion, with a portfolio now including only 14 Chinese companies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.