Hedge fund giant Bridgewater pares China bets, offloading stakes in Alibaba and Baidu
According to its latest quarterly update to the U.S. Securities and Exchange Commission — known as 13F — on Wednesday, the fund closed out stakes in several Chinese companies, including major names like Baidu, Alibaba, JD.com, PDD Holdings, Nio, Trip.com Group, and Yum China. Other names include Qifu Technology and Ke Holdings.
The hedge fund also reduced its stake in Apple, but increased its Microsoft and Nvidia holdings.
Longtime China bull Ray Dalio, who founded Bridgewater Associates, had previously defended his investments in China. Last April, Dalio flagged Beijing's conflict with the U.S. and depressed prices among key challenges plaguing China's economy, but noted that the problems were "manageable by Chinese leaders if they do their jobs well."
In April this year, the billionaire investor called for a rebalancing in U.S.-China relations, arguing that trade imbalances have hollowed out U.S. manufacturing. He also urged both sides to reach a deal to "engineer big reductions in these imbalances."
As of the start of August, Dalio sold his remaining stake in Bridgewater and stepped away from the board, but remains a mentor to the hedge fund's investment team.
The developments come as the tariff truce between Washington and Beijing was extended by another 90 days on Monday. Without the pause, U.S. tariffs on Chinese goods were set to go up to 145%, while Chinese duties were set at 125%. The current levy on Chinese imports to the U.S. stands at 30%, while U.S. exports to China will incur a 10% tariff.
Bridgewater did not respond to a request for comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
4 hours ago
- CNBC
China's booming bubble tea industry faces a test: Is it here to stay or just a fad?
Bubble tea may have started as a playful drink, but it has grown into an industry worth billions. The global bubble tea market size will grow from $2.83 billion in 2025 to $4.78 billion by 2032, according to a report from Fortune Business Insights. This year, three Chinese bubble tea chains — Mixue Group, Guming Holdings and Auntea Jenny — listed in Hong Kong, and raised more than $700 million as investors bet on China's fast-growing consumer market. "This is the right place at the right time," said William Ma, chief investment officer at Grow Investment Group, said in an interview with "CNBC Explains." "A lot of global investors are trying to invest in sectors less sensitive to the U.S. tariffs. So domestic consumption, younger generation consumption, is a more stable or less vulnerable sector," Ma added. Mixue has emerged as the sector's heavyweight, operating more than 46,000 stores worldwide by the end of 2024. That makes it the world's largest food-and-beverage chain by outlet count — ahead of McDonald's, Starbucks and Subway. Its ultra-low pricing and high-volume model lean heavily on franchising. "In 2024, they are growing at around 22% in terms of new store growth," Ma noted. Franchising is central to the bubble tea industry. Most large bubble tea chains don't run the shops themselves. Nearly every outlet is franchised. Parent companies earn from supplying ingredients and equipment, and collecting fees, while franchisees shoulder the costs of rent, labor and utilities. That model fuels rapid growth but comes with trade-offs: maintaining quality and avoiding store cannibalization gets harder as outlets multiply. "The normal payback period for the business owner, for the franchisee, is between 18 to 24 months," said Ma, estimating store closure rates at roughly 20% across the market. But overseas expansion is no guarantee of success. CNBC's China reporter Elaine Yu noted that replicating the domestic formula abroad comes with added challenges. "Supply chains are harder to control, and consumer tastes differ from city to city. That's why brands are adapting to regional flavors and different store formats to win over local customers," Yu said. Market saturation at home, rising costs and intense price wars are also testing the resilience of these brands. Whether they can sustain their valuations will depend on their ability to balance scale with profitability — and prove they can build more than just a fad.
CNBC
5 hours ago
- CNBC
Why Chinese bubble tea chains are brewing billions
Bubble tea has gone from a viral drink to a global business worth billions. In 2025, Chinese bubble tea brands Mixue Ice Cream & Tea, Guming Holdings (Good Me) and Auntea Jenny made headlines with Hong Kong IPOs worth hundreds of millions. Mixue now holds the largest market share by store count, with over 46,000 outlets globally – surpassing American-grown F&B chains McDonald's, Starbucks and Subway. As competition heats up and brands race to expand globally, the question is no longer how fast they can grow – but who's built to last. Watch the full explainer by clicking the link above. Chinese bubble tea chains scaled up quickly by using low-cost franchising. But as IPO buzz fades, long-term value hinges on supply chain control, pricing power and brand resilience.
Indianapolis Star
6 hours ago
- Indianapolis Star
There's just a month until TikTok could be banned – again. Here's where things stand.
President Donald Trump has one month to finalize the sale of TikTok or the short-form video platform risks going dark in the U.S. – again. For months, Trump has said negotiations for the sale of TikTok have been ongoing with China, as the platform is owned by Beijing-based ByteDance. Since the platform went dark for less than 24 hours in January, Trump has extended the deadline on a ban of TikTok in the U.S. three times. And he may just conduct a fourth. In late July, U.S. Commerce Secretary Howard Lutnick said in a CNBC interview that if China did not approve a U.S.-drafted deal to sell the platform's American assets, the app would go dark again, once the next ban extension expires on Sept. 17. "If that deal gets approved by the Chinese, then that deal will happen. If they don't approve it, then TikTok is going to go dark," Lutnick previously said. "And those decisions are coming very soon, so let's see what the Chinese do. They've got to approve it. The deal is over to them right now." The White House did not immediately respond for comment when contacted by USA TODAY on Aug. 15. The next deadline for TikTok to be sold by ByteDance is Sept. 17. Some government officials are concerned that TikTok poses a national security threat, believing that ByteDance, which is based in Beijing, is sharing U.S. user data with China. TikTok has repeatedly denied these claims. In January, the platform went dark for less than 24 hours under federal legislation signed into law by former President Joe Biden in 2024. Trump has signed executive orders three times now that push back the deadline for when TikTok must be sold, promising that deals with China are on the horizon. The latest was in early July, when Trump told reporters aboard Air Force One that he was hopeful Chinese President Xi would agree to a deal to see the platform to the U.S.
