(Yicai Global) Nov. 14 -- Bridgewater Associates, the world's largest hedge fund, and Citron Research, an online investment newsletter that provides shorting-focused stock market commentaries, have turned positive about the prospects for the Chinese market.
Bridgewater has released an internal report titled 'The Shift to Chinese Assets Is Beginning' that suggests Chinese asset allocation still has big room for improvement. If global asset allocations matched the nation's economic and financial strength, then China's potential is huge, the Securities Times reported yesterday.
Foreign investors have been quickening their buying of Chinese stocks and bonds, according to the Bridgewater report.
The allocation of global assets in China accounts for less than 10 percent of that in four economies, namely the US, Europe, Japan and China, meaning China can do better that in the future.
Bridgewater's Shanghai-based unit, Bridgewater China Investment Management, set up its first China private equity fund -- China's All-Weather Private Equity Fund No. 1 -- on Oct. 9, and completed registration with the Asset Management Association of China on Oct. 17, per information from the association.
Andrew Left, an activist short-seller and the founder of Citron Research, has also shifted to a positive outlook on the Chinese market. At the Reuters' Global Investment Outlook Summit 2019, Left said he would rather buy Alibaba Group Holding than Amazon because of the value that exists in the China market.
China will be included in the first batch for capital allocation when he sets up his first hedge fund, he added.
Editor: Bivash Mukherjee