Ray Dalio is bullish on China and thinks now is the time to invest
Ray Dalio says it is “very risky” to avoid investing in China
Billionaire Investor Believes Ant’s IPO Suspension Was Smart.
Legend of the hedge fund market Ray Dalio backed China’s sudden suspension of Ant Group’s record $ 37bn public listing on Wednesday, saying regulators’ decision was reasonable.
Suspension hits Ant Group and its boss Jack Ma, as the company faced obstacles following the introduction of a number of new rules restricting its lending business.
Dalio, founder of Bridgewater Associates, said the sudden suspension of the IPO should not undermine investor confidence, as it could pose risks of over-flexibility to innovate..
«Ant is a completely new concept in terms of banking, and it could almost replace or threaten the banking system in China. And it has not yet received the proper development in terms of regulatory analysis and the like.», – he said during a virtual conference at China Town Hall on Wednesday.
Ant was poised to break records with its IPO, which was touted as the largest in history, and a potential listing positioned Chinese financial technology as a revolution in the banking sector..
The Reasons Why Ray Dalio is Bullish on China (WATCH THIS BEFORE INVESTING IN CHINESE STOCK MARKET)
«And it is important to clearly understand that there is state capitalism in China. Thus, the state will control these things.», – said Dalio, describing the regulators of the world’s second largest economy as «reasonable, caring and well-informed».
The investor who founded the world’s largest hedge fund also said that not investing in China would be «very risky». After examining the rise and fall trends of empires that have issued reserve currencies over the past 500 years, Dalio concludes that China is becoming one of them..
«Not [in] Chinese capital markets is very risky», – said Dalio, adding that «fundamental factors undermine the US dollar».
«The US creates a lot of debt and prints a lot of money, which in history has always posed a threat to reserve currencies», – he said.
Dalio, who has long been a proponent of investing in China, said that «people accuse me of bias, naivety and, in some cases, unpatriotic, and I think that I am just speaking objectively».