Billionaire investor Ray Dalio believes investing in China remains tricky at the moment because Beijing may be looking to structurally wean the country away from capitalism. The founder of Bridgewater Associates, one of the world’s largest hedge funds, said investors should adopt a careful and cautious approach when investing in developing regions as they undergo regime changes. “Some big things happened, they went through a debt crisis, they went through a crisis of capitalism,” Dalio said in Greenwich on Tuesday. “Are they … as good for capitalism as we knew before? I don’t believe their case is. His comments come amid a recent resurgence of enthusiasm for investing in China, including a series of stimulus measures aimed at reviving growth and averting a deep recession in the world’s second-largest economy. Cutting interest rates and lowering the amount of cash banks are required to hold (known as reserve requirements), investors were disappointed on Tuesday, however, when Chinese officials announced no further actions to boost the economy at a much-anticipated news conference. Specific stimulus plan. China’s rally ran out of steam, with the CSI 300 blue-chip index falling to 5% after surging more than 10% earlier on Tuesday. ),” Dario said. Hedge funds have piled into battered Chinese stocks, driven by hopes of more government stimulus. David Tepper of Appaloosa Management recently told CNBC that he is buying “everything” related to China because of the latest government support. The high-profile investor even said he was increasing his usual allocation limits and would not hedge his big bets in China. Over the past few years, Beijing has imposed tighter regulations on the domestic technology industry to rein in the power of some of the largest companies. In the wide-ranging interview, Dalio also commented on the Fed’s easy monetary policy path. He said he doesn’t expect to cut interest rates significantly because the economy remains solid. “I don’t think interest rates will come down significantly. I think the economy itself is generally in a relatively good balance right now,” he said.
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