According to the WSJ, Ray Dalio’s hedge fund Bridgewater Associates, LP is planning to expand into China. Pending approval from Beijing, the firm plans to open a new fund in China that will raise money domestically and then buy and sell assets across the country. This differs from other foreign investment houses in China that were required to work with a local partner and under heavy regulatory scrutiny. Beijing has recently changed it’s approach to working with foreign managers that want to operate within China as the country aims to stave off sluggish international growth. Per the Journal:
Bai Weiqun, chief supervisor of market regulator China Central Depository & Clearing Co., says Bridgewater’s expansion in China is a result of its “financial market becoming more open and transparency improving.”
The Bridgewater fund will focus solely on Chinese securities and utilize the firm’s established All Weather investment strategy. This strategy has a long-term duration and aims to remain balanced over time by not speculating on short term movements in the market. The fund is likely to attract international capital as well as Chinese investors, which Bridgewater has already raised billions of dollars from in the past. Some of Bridgewater’s previous capital partners include China Investment Corp. and the State Administration of Foreign Exchange.