Bridgewater’s founder supports Ant IPO suspension, bullish on China

Bridgewater Associates co-chairman Ray Dalio. Photo by Emily Hey. Nikkei Asian Review.

Ray Dalio, founder of Bridgewater Associates, expressed support on Wednesday for China‘s abrupt decision to suspend Ant Group’s record $37 billion listing, citing the need to curb risks from financial innovation.

At the same time, Dalio, who calls himself a “chronic bull on China“, also told an online conference that not investing in the rising Asian power is “very risky”.

Earlier this month, Chinese regulators shocked global investors by suspending the Shanghai-Hong Kong dual-listing by fintech giant Ant, just days before what would have been the world’s largest stock market debut.

Dalio brushed aside concerns that the surprise move could dent investor confidence, arguing there’s a risk of being too loose on innovation.

Ant is a whole new concept in terms of banking, and almost could replace or threaten the banking system in China. And it hasn’t yet been properly established in terms of regulatory review and the like,” Dalio told the China Town Hall 2020.

“And it’s important to be clear that what we have in China is state capitalism. So the state is going to control those things,” said Dalio, describing Chinese regulators as “reasonable, caring, and highly-informed.”

Dalio, whose hedge fund giant is famous for making money during the 2008 financial crisis, said even in the United States regulators struggle to strike the balance between freedom and restrictions, and “there’s always a wrestling match on that.”

After studying rises and declines of reserve currency empires over the last 500 years, Dalio judged that “China is now evolving into that role”.

“To be absent (from) the Chinese capital markets is very risky,” Dalio said, adding “the fundamentals are undermining the U.S. dollar.”

He added that the U.S. is “creating a lot of debt and printing of a lot of money, which in history was a threat to reserve currencies.”

Dalio, who first visited China 36 years ago, said “people have accused me of being biased, naive, and in some cases unpatriotic. I think I’m just being objective.”

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.