Bridgewater Associates, the world’s largest hedge fund, eliminated its holdings in US-listed Chinese companies during the second quarter, selling $1.41 billion worth of shares in a dramatic retreat from the world’s second-largest economy.
The firm exited positions in 16 Chinese companies, including tech giants Alibaba, JD.com, and Baidu, as well as electric vehicle maker Nio and restaurant chain Yum China, according to regulatory filings released Wednesday.
This concludes a seven-quarter divestment campaign that reduced Bridgewater’s Chinese stock holdings by 80% since late 2022. The fund, which managed approximately $124 billion in assets as of May, now holds no direct positions in US-traded Chinese equities for the first time in years.
The exit reverses years of China advocacy by founder Ray Dalio, who has long championed investment in the country. As recently as April, Dalio defended Chinese investments, arguing the market’s problems were “manageable” and that cheap valuations presented opportunities.
Dalio completed the sale of his remaining stake in Bridgewater in July 2025, stepping away from the board while continuing as a mentor to the investment team.
The retreat reflects Chinese equities’ poor performance compared to other major markets. Over the past seven quarters, the MSCI China benchmark gained only 1.7% while major US, Japanese, and Indian indexes posted gains of 34% to 52%, according to market data.
China’s economy grew 4.7% in the second quarter, down from 5.3% in the previous three months, as the country grapples with a prolonged property crisis and mounting debt concerns.
Bridgewater has simultaneously increased its exposure to US technology companies, boosting holdings in Nvidia (Nasdaq: NVDA) by 154%, Microsoft (Nasdaq: MSFT) by 112%, and Alphabet (Nasdaq: GOOG) by 84% during the quarter.
Information for this story was found via SCMP, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
