Ray Dalio says now is the time to buy ‘cheap’ Chinese stocks as Beijing works to revive the economy

Name: China’s elderly are heading to retirement, here’s why that’s a problem
Uploaded: 2024-04-02T06:30:17.000Z
Duration: 37 min 19 s
Description: China’s elderly are heading to retirement, here’s why that’s a problem

‘To me the key question isn’t whether or not I should invest in China so much as how much I should invest,’ the hedge fund billionaire said in his LinkedIn blog

Chinese stocks are looking to recoup some US$10 trillion of losses from the last three years, with valuations hovering near a decade-low

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‘China’s problems … are manageable by Chinese leaders if they do their jobs well by being both smart and courageous,’ says Ray Dalio, pictured here at the China Development Forum in Beijing, in March 2023. Photo: EPA-EFE

Jiaxing Li

Published: 2:30pm, 2 Apr 2024

Ray Dalio, the billionaire founder of world’s largest hedge fund, Bridgewater Associates, said now is the time to invest in beaten-down Chinese stocks as Beijing works to shore up the economy.

“The time to buy is when everyone hates the market and it’s cheap, which is now the case in Chinese equities,” especially as there are signs that the country’s economic leaders are preparing stimulus measures like quantitative easing and debt restructuring to deleverage the economy, he said in his LinkedIn blog on Tuesday.

“China’s problems … are manageable by Chinese leaders if they do their jobs well by being both smart and courageous. I think those who guide policy in China will eventually come around to dealing with the problems well,” he wrote.

Dalio’s remarks came as Beijing’s policymakers intensified efforts to revive the world’s second largest economy, which has been hobbled by a property market downturn, local government debt problems and deflation risks.

The central bank has lowered key interest rates and reserve ratio requirements in the last few months, and is now widely expected to resume buying treasury bonds to inject more liquidity into the economy.

37:19

China’s elderly are heading to retirement, here’s why that’s a problem

Chinese stocks are now looking to recoup some US$10 trillion of losses from the last three years, with valuations hovering near a decade-low. The MSCI China Index tracking more than 700 companies traded at home and abroad has rebounded 12 per cent from a January low, ranking it among the best performers among major global peers during that period, according to Bloomberg data.

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