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Bridgewater Associates founder Ray Dalio said investing in China is important because of the benefits of portfolio diversification and China’s continued economic growth.
Mr Dalio said that when he started visiting China half-life ago, he handed over $ 10 calculators to senior officials they believed to be miracles. Noting how far China has come since then, Dalio said, “There has been a miracle in China.
“In the case of China, they know that it is very important to have this market economy and to develop these things and that the basis is not the extremism which is widely perceived. This does not mean that there is no tightening… but because of the notion of diversification and the power of what is to come, I think it is important to invest in China ”, Dalio told The Wall Street Journal’s Board of CEOs on Tuesday.
He added that Bridgewater plans to invest in China in the same way it plans to invest in the 40 or so countries it invests in and the company invests more in asset classes than in individual companies. But when asked if human rights considerations would ever cause him to leave China, he replied, “If it was clear that there were violations, then I am loath to it and I knew enough about it, I wouldn’t invest there. “
A longtime Chinese bull whose giant hedge fund has counted the Chinese government and other Chinese institutions among its biggest clients, Dalio last week made controversial comments on human rights considerations when it is investing in China. “I can’t be an expert on this stuff,” he told CNBC, later adding, “Shouldn’t I be investing in the United States because of other things – our own problems of human rights or other things? “
The comments drew backlash from, among others, Senator Mitt Romney (R-Utah), who wrote on Twitter that “Mr. Dalio’s feigned ignorance of China’s horrific abuses and the rationalization of collusive investments there. low is a sad moral breach ”.
In an internal call to Bridgewater on Thursday, Mr Dalio said he answered the question incorrectly but that the company’s investments in China were important to consider. Mr Dalio clarified his comments on CNBC in a LinkedIn post on Sunday, writing that he believes human rights are important and that he believes in the American system. He wrote that he had tried to explain that China’s approach to governing “is a more autocratic approach that feels like a strict parent. I was neither expressing my own opinion nor endorsing this approach.
Bridgewater recently catapulted itself into the ranks of one of China’s largest foreign private fund managers, raising the equivalent of $ 1.25 billion for its third-largest investment fund in China.
Mr Dalio also said on Tuesday he was concerned about the possibility of US-Chinese decoupling, noting the interconnection between US and Chinese companies making products he described as “an essential part of our well-being. to be “, and on the prospect of a war between the two countries.
He also referred to the stock market, saying it was not a bubble and that crypto “has reasons of rationality.” He said the crypto had not been hacked and had gained in perceived value over the past 11 years, and that even though it was inferior to other assets, it had to be seen in an environment where governments were printing money. money.