The fund exited positions in 16 Chinese stocks, which were worth US$1.41 billion in total, according to its 13F filing with the US Securities and Exchange Commission on Wednesday. This included e-commerce giants Alibaba Group Holding, JD.com and PDD Holdings, search-engine operator Baidu, electric-vehicle maker Nio, travel services provider Trip.com Group and restaurant chain Yum China. Alibaba owns the South China Morning Post.
The sell-off also included TAL Education Group, H World Group, KE Holdings and Autohome, wiping out Bridgewater’s direct exposure to US-traded Chinese equities for the first time in years.
The exit came after Bridgewater made headlines in recent quarters by slashing its exposure to US equities and piling into Chinese names. The firm had sharply increased its bet on e-commerce leader Alibaba in the first quarter – boosting its stake by more than 3,360 per cent to US$748.4 million from US$21.6 million at the end of 2024.
The reversal coincided with growing market volatility and signs of investor caution. In the second quarter, renewed tariff shocks between the US and China triggered sharp corrections in both markets.
Founded by veteran investor Ray Dalio, who has long described China as a strategic part of a diversified global portfolio, Bridgewater appears to have reassessed its exposure amid the global trade tensions.
