Bridgewater Associates, the world’s largest hedge fund firm, said it remains positive on Chinese equities in 2026 after a strong rally in local markets helped its onshore hedge fund deliver its best performance in at least five years, according to a report by Bloomberg.
In a December letter to investors, the firm’s Shanghai-based private fund management arm said Chinese stocks “remain attractive to some extent” following improved corporate profit expectations. The firm described itself as “moderately optimistic” on equities, both on an absolute basis and relative to other asset classes.
The onshore All Weather Plus fund, which allocates across equities, bonds and commodities, rose 9.1% in the fourth quarter, lifting its full-year return to 44.5% before fees. By comparison, the CSI 300 Index gained 18% in 2025.
Bridgewater noted that the views were expressed at year-end and could change as market conditions evolve. The firm declined to comment further.
The performance capped a strong year for Bridgewater globally and extended its outperformance in China, where it has continued to attract domestic capital and widen its lead over foreign rivals in the country’s roughly RMB7tn hedge fund market.
According to the investor letter, supportive government policy, easing external risks and improving sentiment — including optimism linked to advances in artificial intelligence — created market conditions that were “very conducive” to the firm’s diversified investment approach.
While volatility from geopolitical tensions and trade frictions persisted, Bridgewater said its balanced All Weather framework helped cushion market swings and deliver strong full-year results.
The firm also sees rising demand for its offshore Asia strategies. Bridgewater raised capital last year for its Asia ex-China Total Return Fund, which gained 37% in 2025, lifting its annualised return since launch in 2023 to 26%, according to a person familiar with the matter. Chinese investors are still able to access the fund through the Qualified Domestic Limited Partner programme, subject to quota limits.
Bridgewater has emerged as the leading foreign hedge fund operator in China, growing onshore assets under management to around RMB60bn in 2025. That compares with an average 22% return across Chinese multi-asset hedge funds last year, according to local industry data.
Looking ahead, the firm said it expects policymakers to maintain a supportive stance and plans to modestly increase exposure to Chinese risk assets as authorities retain the capacity to stimulate growth when required.
