Bridgewater founder Ray Dalio said China would emerge as a rival to New York and London as the world’s financial center, according to Financial Times. Dalio referred to a “defining year” 2020 to bet on an epochal shift in the global economy in favor of China.
- Dalio notes, “China already has the world’s second-largest capital markets,” which makes it suited to vying for the world’s financial center.
- The coronavirus crisis highlighted China’s economic outperformance with about Rmb 1 trillion of investment inflows.
- Many analysts and money managers expect international investors to continue ratcheting up their allocations to China in the coming years.
- Dalio has defended China’s investment challenges and political risks, such as Ant’s IPO’s suspension, saying nothing is perfect, and investors need to diversify.
- Dalio predicts China could, in time, account for a “very meaningful” part of Bridgewater’s business, which has about $150 billion in assets under management.
Chinese stocks and the Yuan are currently declining. CSI 300 Index is down 0.99%, USDCNY is up 0.10%
