Business · 2026-10-23 · Morning briefing

Bridgewater China cuts gold, turns 'optimistic' on local stocks

Bridgewater Associates’ China arm has signalled a strategic shift, telling investors it is now less bullish on gold and “prudently optimistic” about local stocks. The Shanghai-based hedge fund's adjustment follows a volatile quarter and coincides with a move to grant human managers greater control over asset allocation.

In its September investor letter, the firm explained its gradual reduction of overweight gold positions. It cited higher interest rates, which increase the opportunity cost of holding the non-yielding asset, and rising oil prices, which are expected to curb demand from large energy importers like India.

The pivot towards local equities is notable at a time when many international investors remain wary of China's economic outlook. By also granting more discretion to its human fund managers, Bridgewater's move suggests that navigating the country's policy-driven markets may now require more than the firm's famously systematic trading models.

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• Bridgewater China Cut Gold and Is ‘Optimistic’ on Local Stocks

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