Westport, Connecticut-based U.S. hedge fund manager Bridgewater Associates has won approval to register a wholly owned subsidiary in Shanghai to access China’s financial markets, according to a filing at the Shanghai office of the State Administration for Industry and Commerce.
The filing shows that Bridgewater’s founder Ray Dalio registered Bridgewater (China) Investment Management Ltd. on March 7 with capital of RMB50 million (US$7.6 million) in the Shanghai Free Trade Zone.
Bridgewater is likely to take advantage of recently granted permissions for foreign institutions to more easily trade the country’s RMB-denominated debt securities, according to media reports citing a research report by Z-Ben Advisors.
"While there are concerns over credit quality in certain segments, China still does offer comparatively high-quality bonds and with decent yields," Z-Ben commented in a report.
The Bridgewater approval is likely to encourage other foreign investment firms to consider if they should re-evaluate the Chinese stock market.
Founded in 1975, Bridgewater Associates manages approximately US$150 billion in global investments for institutional clients.