English

By Wang Shen

The Bridgewater (China) Investment Management Co., Ltd., the world's largest hedge fund has officially become a domestic private equity (PE) manager in China to enter the A-share market, as reported by the China Securities Journal on Wednesday.

According to the Asset Management Association of China, Bridgewater (China) will issue its domestic PE products within six months.

The Bridgewater Associates have the broadest possible understanding of the global economy and financial markets and translates that knowledge into attractive portfolios and strategic partnerships with institutional clients.

The Bridgewater (China) Investment Management Co., Ltd. was established in March 2016. In March 2017, its legal representative, Ray Dalio who is the founder of Bridgewater Associates, was replaced by Wang Yan. In March 2018, Bridgewater (China) turned its operational scope into investment management to prepare it for its application for PE manager services in China.

In September 2016, China allowed foreign organizations to apply for PE manager services. At present, 13 international organizations have been approved for these services.

At the beginning of June 2018, Greg Jensen, the co-chief investment officer stated in his report for investors that 2019 has been recognized as a risky year since the fiscal stimulus is gradually decreasing while at the same time the impact of the Federal Reserve tightening up its currency would reach its peak.

Bridgewater believed that for the investors, the risks have occurred in the market because the market is fragile. Another reason is that the Federal Reserve reduced the liquidity by increasing the interest rate, which made cash more scarce and attractive, as well as changed the situation of the market interest rate from zero. The shift in liquidity posed a risk to the related assets.

Jensen suggested that the U.S. economy is approaching the end of its cycle and its liquidity has been reduced to a minimum. The market has not reflected significant changes in the environment but continued to reflect the recent situations.