China faces “real issues”, remain invested but caution suggested: Ray Dalio

In an interview with Bloomberg Television, Dalio said China’s situation has become more challenging in recent years. With the economy shrinking and property and stock markets struggling, many people in China are holding onto their cash instead of investing.

“You have an environment in China which is changing and becoming a more difficult environment,” Dalio had said.

The country’s industrial production has also been slowing down for the longest stretch since 2021. This is putting pressure on the Chinese government to introduce stronger financial measures to meet its growth goal of around 5% for the year.

Despite these challenges, Dalio mentioned that his investment in China will remain for now.

“China remains a ‘very attractively priced place’ to invest in, but the question is the size of the investment and how it’s structured,” he said.Also read: FPIs make a beeline for India in September on hopes of Fed rate cut

Dalio also pointed out that China’s economy needs some restructuring, especially due to issues in its property sector. He compared China’s current situation to Japan’s economic struggles in 1990, saying it might even be tougher for China.

Additionally, Dalio noted that China’s economic troubles are a big challenge for President Xi Jinping, who needs to balance growth without creating another boom-and-bust cycle.

He advised investors to diversify and not put too much money into any one country, as all economies have their ups and downs.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)