Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Investors should diversify into Chinese assets, Ray Dalio tells FinTech Week

Investors should diversify into Chinese assets, Ray Dalio tells FinTech Week

Investors across the world should diversify further into Chinese assets, as it opens its capital markets and challenges the US in areas ranging from trade to technology, American billionaire investor Ray Dalio said.

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.

Dalio has a large following in China’s business circles, and “a significant portion” of his investment portfolio is in the country. He said he favoured Chinese bonds to US ones because China’s currency was set to benefit from huge capital inflows as Beijing opened its financial markets to the world.



Shipping containers from China and other Asian countries are unloaded at the Port of Los Angeles in Long Beach, California. China has become the engine of global economic growth as the US and Europe have struggled to contain new waves of coronavirus infections.


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.

The US presidential election on Tuesday has also driven a more hostile attitude towards China in both the Democratic and Republican camps. Meanwhile, China has also become the engine of global economic growth this year, as the US and Europe have struggled to contain new waves of coronavirus infections.

China’s rise and its subsequent competition with the US was one of the three biggest factors shaping the world currently, Dalio said. The other two were the global debt cycle, which started in the aftermath of the 2008 global financial crisis, and the polarisation of political views globally.

The yuan could, meanwhile, become a viable reserve currency much sooner than anyone expects, Dalio said, as its importance could rise slowly at first and then accelerate when investors realise they no longer desire US debt as much as they did before.

China GDP: economy grew by 4.9 per cent in third quarter of 2020


But the change was unlikely to happen overnight, and would take quite some time, as China still retained a firm grip on the yuan’s exchange rate despite years of efforts to internationalise the currency.

Zhou Xiaochuan, a former reformist governor of China’s central bank, said last week that it was time for Beijing to loosen its capital account controls to facilitate the international use of the yuan, and called for consistency in the country’s currency policies.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×