World’s largest hedge fund exits Chinese market

Thursday 14 August 2025 - 17:30

Bridgewater Associates, the world’s largest hedge fund, has fully withdrawn from its investments in Chinese companies listed in the United States during the second quarter of 2025, according to reports in Chinese financial media on Thursday.

The fund, which manages $136.5 billion in global assets, sold its holdings in 16 Chinese firms totaling $1.41 billion, as indicated in its Form 13F filing with the U.S. Securities and Exchange Commission (SEC). This filing is a quarterly requirement for major institutional investors operating in the U.S. markets.

Among the companies sold off were major Chinese tech and e-commerce players such as Alibaba, JD.com, PDD Holdings, as well as Baidu, electric vehicle manufacturer Nio, and travel platforms Trip.com and Yum China.

This marks a significant shift for Bridgewater, which had sharply increased its exposure to Chinese equities just a quarter earlier. At that time, the fund boosted its stake in Alibaba alone by over 3,360%, bringing its value to $748.4 million.

Founded by renowned investor Ray Dalio, who has long advocated for including China in global diversified portfolios, Bridgewater appears to have reassessed its strategy in light of growing U.S.-China trade tensions and market volatility.

Simultaneously, the firm has shifted its focus toward U.S. technology giants. Bridgewater’s position in Nvidia surged by 154%, making up 4.61% of its portfolio. Stakes in Microsoft (+112%), Alphabet (+84%), and Meta Platforms (+90%) were also significantly increased.

As of June 30, the fund held 585 positions in publicly traded equities, with a total market value of $24.8 billion, up from $21.6 billion three months earlier.

Interestingly, Bridgewater’s retreat contrasts with the behavior of other institutional investors. According to Morgan Stanley, traditional funds poured $2.7 billion into Chinese equities in July, up from $1.2 billion in June, indicating a divergence in strategy.