Bridgewater China trims gold overweight and turns cautiously optimistic on Chinese stocks

Bridgewater China told investors that it has become less bullish on gold and is cautiously optimistic about mainland Chinese equities. In a September letter to investors, the Shanghai-based hedge fund said it had gradually reduced a previously overweight position in gold. The firm said higher interest rates had raised the opportunity cost of holding the metal, while rising oil prices had curbed demand from energy-importing countries such as India. At the same time, Bridgewater China expressed a constructive view on Chinese assets. It said stock valuations are not high at present, policy direction supports the formation of long-term capital, and low bond yields could lead to more money moving into equities over time. The update points to a shift in portfolio positioning away from an earlier gold tilt and toward a more favorable stance on domestic Chinese stocks, based on valuation, policy support, and relative yield conditions described in the investor letter.