Opportunities and threats of investing in China

August 11th, 2019

Insights from Bridgewater’s Ray Dalio.

The rapid growth of China’s economy has attracted retaliation from the US. In light of the opportunities and threats, here is what Ray Dalio thinks about investing in China.


Dalio believes the Chinese stock market has high expected returns relative to risks. Given the thriving technological developments (e.g. China now ranks #1 in fin-tech), the Chinese private equity market presents an immense opportunity for growth. He also deems Europe a dooming market due to sluggish technological development.

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All markets have their distinct risks. As a strategy of diversification, Dalio recommends investing in both the Chinese and US markets.

Looking forward, Dalio foresees China to make dramatic impacts in a positive yet unanticipated manner, and it will be affected by universal issues (e.g. climate change, pandemics) as in other parts of the globe.