After making a big profit, Bridgewater Associates said it will continue to increase its holdings of Chinese stocks!
Bridgewater stated in its third-quarter letter that despite the rebound in the Chinese stock market, prices are still below earnings prospects, and they plan to continue increasing their holdings of Chinese stocks. The fund also holds a long position in bonds and maintains a neutral stance on commodities, expecting Chinese policies to support the economy. Sinolink Asset Management pointed out that China has taken meaningful economic stimulus measures, boosting investor sentiment. A survey by Bank of America showed that fund managers in the Asia-Pacific region are increasingly bullish on Chinese assets
Bridgewater, headquartered in Shanghai, stated in its third-quarter letter to investors that despite the rebound in the Chinese stock market, prices remain at relatively low levels compared to earnings prospects, and Bridgewater will continue to "moderately increase holdings" of Chinese stocks. According to Bloomberg News, as of September 30, the fund also held a long position in bonds and maintained a "neutral" stance on commodities.
Expecting continued support for the economy from Chinese policymakers, the company "moderately" plans to go long on short-term bonds. It also intends to increase its exposure to long-term bonds. The letter stated that although the market has already priced in expectations of tightening bond market policies in the coming years, Bridgewater Fund still sees investment opportunities.
Principal Asset Management, a U.S.-based fund management company, stated that China is taking "meaningful" measures to revitalize its economy, which is improving investor sentiment.
Steve Larson, the global equity portfolio manager of the company, stated at a conference in Hong Kong on Thursday: "We have been increasing our investments in China, both indirectly through the Hong Kong market and directly through the Chinese market," "I have shifted from skepticism to much more optimism about the future direction."
This optimism is not isolated. A survey by Bank of America this month showed that as expectations for China to adopt loose policy measures increase, fund managers in the Asia-Pacific region are becoming more bullish. They are allocating more funds to Chinese assets and reducing their exposure in India