Ray Dalio, the founder of Bridgewater Associates who has always been bullish on the Chinese market, said at the Greenwich Economic Forum on Tuesday that investing in China is still tricky because Beijing may be structurally moving the country away from capitalism.
(Bridgewater founder Dalio looks at China’s market outlook and how to implement “beautiful deleveraging” is the key)
Ray Dalio: Investing in China is still tricky
According to CNBC, Bridgewater Associates founder Ray Dalio gave a speech at the Greenwich Economic Forum on Tuesday. He reminded that investing in China is still tricky because Beijing may be structurally keeping the country away from capital. doctrine, investors should adopt a cautious attitude when investing in this region.
Something big happened in China, they were in a debt crisis, and they were in a capitalist crisis. Are they as good for capitalism as we previously knew them to be? I don't believe they are the same way.
Dalio believes that the structural changes taking place are related to the government's desire to retain complete control, and this will affect the economy.
He emphasized that there is no need to constantly pay attention to the Chinese market every day.
Is China’s investment boom fading temporarily?
Recently, the market has regained its enthusiasm for investing in China. Beijing has said it will take a series of stimulus measures to revive growth and avoid a deep recession in the world's second-largest economy, including cutting interest rates and lowering the amount of cash banks need to hold, known as the reserve requirement ratio.
However, Chinese officials did not announce any specific stimulus plan as they laid out actions to further boost the economy at a much-anticipated news conference after the country returned from a week-long holiday. Gains in Chinese markets have lost steam, with the CSI 300 blue-chip index and the Shanghai Composite Index both down more than 2% today,
Source: CNBC
(China’s stock market opens sharply higher, can optimism continue?)
Dalio thinks the Fed will cut interest rates significantly
Dalio also commented on the Federal Reserve's easy monetary policy path. He believes that the U.S. economy remains robust and he expects the Federal Reserve to cut interest rates significantly.
I don't think interest rates will come down significantly. I think the economy is generally in a relatively good balance right now.
This article Dalio, founder of Bridgewater: China is moving away from capitalism, and investing in China is still difficult appeared first on Chain News ABMedia.