China bull Ray Dalio’s Bridgewater dialled down holdings in Chinese stocks such as Li Auto, Baidu, iQiyi and Yum China in the last quarter
- New York-headquartered Tiger Global Management also made similar moves, the company’s 13F filing shows
- Bridgewater, however, boosted its holdings in Futu by more than 180 per cent, bringing its total layout to US$14.8 million
The fund recorded a 15 per cent drop to US$1 billion in the value of its equity stakes in 44 US-listed Chinese companies, in its latest 13F regulatory filing for the December quarter. Its overall stock portfolio recorded a 7.2 per cent drop in value from the previous quarter to US$18.3 billion as of December 31, when it exited 133 companies and bought 87 new ones.
The Westport, Connecticut-based firm slashed its holdings in electric-vehicle maker Li Auto and drug maker Hutchmed by almost 50 per cent in the last quarter. It also trimmed stakes in most other Chinese American depository receipts, including those of search-engine giant Baidu, video-streaming platform iQiyi and fast-food chain operator Yum China, by 2 to 48 per cent, according to its filing.
02:24
China records second-lowest economic growth figure in almost 50 years after Covid-ravaged 2022
The two US money managers took advantage of a huge rebound in Chinese stocks in the last quarter. After China scrapped its stringent zero-Covid control measures in November, the MSCI China Index of 713 stocks – traded at home and abroad – became one of the best performers among major global indices by jumping 13.4 per cent in the fourth quarter, which helped restore US$2.3 trillion of market value at index members.