Bridgewater's China Arm Boosts Capital to Expand Its Presence
Zhou Ailin
DATE:  Jan 08 2020
/ SOURCE:  yicai
Bridgewater's China Arm Boosts Capital to Expand Its Presence Bridgewater's China Arm Boosts Capital to Expand Its Presence

(Yicai Global) Jan. 7 -- Bridgewater China Investment Management, a wholly funded Chinese unit of the world's largest hedge fund manager, has lifted its registered capital by almost 50 percent as a prelude to increasing the size of its footprint in the second-largest economy.

The Shanghai-based unit of Bridgewater Associates raised its registered capital to CNY310 million (USD44.6 million) from CNY210 million in December, the second time since its was formed in March 2016, according to business information provider Tianyancha. The company had hiked its registered capital to CNY120 million from CNY50 million in December 2018.

In an interview with Yicai Global last March, Bridgewater founder Ray Dalio said that the US-based firm was missing out on a large part of global development because it lacked exposure to China. From a portfolio perspective, foreign capital must have exposure to the Chinese market, and the timing was right, he said.

Bridgewater China was one of the 15 overseas private equity fund managers in the country after registering as such with the Asset Management Association of China in June 2018. It launched its first PE fund targeting Chinese investors the following October.

The China Securities Regulatory Commission confirmed a schedule to lift restrictions on foreign equity in futures, fund companies and brokers last October. Limits on foreign equity in fund managers will be lifted on April 1, meaning overseas private equity can apply for conversion to mutual funds.

Industry insiders said that capital increases by most overseas PE firms is probably related to their preparations to convert to mutual funds. Capital increase is necessary to expand their presence in China though mutual funds are not in the DNA of hedge funds like Bridgewater, they added.

Editor: Peter Thomas

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Keywords:   Bridgewater