The Chinese stock market just lost another friend.
Bridgewater, which has $US169 billion (£108 billion) under management and was one of the last bulls on China, is reversing its stance, according to a report in the Wall Street Journal.
“Our views about China have changed,” Bridgewater’s founder, Raymond Dalio, told clients earlier this week, according to WSJ. “There are now no safe places to invest.”
He thinks the unravelling stock market will kill China’s economic growth.
“Even those who haven’t lost money in stocks will be affected psychologically by events, and those effects will have a depressive effect on economic activity,” said Dalio.
Chinese stocks have lost 22% of their value from a high in June.
Official data shows the Chinese economy growing at 7%. But not everyone believes the numbers. Citigroup said in a note this week that China is inflating its figures and “in practice, ‘genuine’ GDP growth probably is below 5%.”
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