Investors ‘overweight’ in US and European assets and should increase Chinese holdings, Ray Dalio tells Hong Kong FinTech Week
- ‘The interest rate differentials are favourable, the growth rate differentials are favourable’, founder of Bridgewater Associates says
- Yuan could become a viable reserve currency much sooner than anyone expects: Dalio
Investors across the world should diversify further into Chinese assets, as it opens its capital markets and challenges the United States in areas ranging from trade to technology, American billionaire investor Ray Dalio said on Monday.
“The world is overweight in … US and European assets relative to Chinese assets,” he said during a Hong Kong FinTech Week webinar. Dalio is the founder of Westport, Connecticut-based hedge fund Bridgewater Associates, the world’s biggest such firm. Bridgewater has US$138 billion worth of assets under management currently.
“The interest rate differentials are favourable, the growth rate differentials are favourable. A big element is going to be order, internal order, and so far that’s pretty favourable,” he said of China, adding that the country’s handling of the Covid-19 pandemic exemplified its stronger ability to maintain an orderly society when compared with western democracies.
His remarks came amid a new low in relations between Beijing and Washington, which have disagreed this year over a host of issues, ranging from the origin of the coronavirus to a national security law in Hong Kong to US sanctions against Chinese technology giants.
