Bridgewater Associates exited its holdings in U.S.-listed Chinese companies in the second quarter, signaling a decisive retreat as geopolitical tensions and shifting sentiment darkened the outlook for the world’s second-largest economy.
According to its August 13 13F filing, the hedge fund sold positions in 16 Chinese stocks worth $1.41 billion, including e-commerce giants Alibaba Group (NYSE:BABA), JD.com (NASDAQ:JD), and PDD Holdings (NASDAQ:PDD), search engine Baidu (NASDAQ:BIDU), electric vehicle maker Nio (NYSE:NIO), travel platform Trip.com Group (NASDAQ:TCOM), and restaurant chain Yum China (NYSE:YUMC).
Bridgewater also closed its indirect exposure to China by selling ETFs like the iShares MSCI China ETF (NASDAQ:MCHI) and iShares China Large-Cap ETF (NYSE:FXI).
Shares of Alibaba, Baidu, PDD, Nio, Li Auto (NASDAQ:LI), and XPeng (NYSE:XPEV) all dropped in premarket trading as investors turned jittery. JD.com traded upwards, backed by its upbeat second-quarter results.
The sell-off also included TAL Education Group (NYSE:TAL), H World Group (NASDAQ:HTHT), KE Holdings (NYSE:BEKE), and Autohome (NYSE:ATHM), eliminating Bridgewater’s direct exposure to U.S.-traded Chinese equities for the first time in years.
Also Read: Alibaba, Nio Lead Gains As US And China Extend Trade Truce
The move came just months after the fund dramatically boosted its Alibaba stake in the first quarter by more than 3,360% to $748.4 million from $21.6 million.
The retreat coincided with renewed tariff tensions between Washington and Beijing. On Monday, the two governments extended their trade truce by 90 days, narrowly averting a tariff hike.
President Donald Trump signed an executive order pausing new duties until November 10, while China reciprocated, keeping existing tariffs, 30% on Chinese imports to the U.S. and 10% on U.S. goods to China, in place. The extension, following earlier threats of duties above 100%, temporarily cools a dispute that had intensified earlier this year.
The hedge fund shifted capital into U.S. tech stocks, raising its Nvidia (NASDAQ:NVDA) stake by 154% to 4.61% of its portfolio, and significantly boosting holdings in Microsoft (NASDAQ:MSFT) (+112%), Alphabet (NASDAQ:GOOGL) (+84%), and Meta Platforms (NASDAQ:META) (+90%), SCMP reported on Thursday.
As of June 30, Bridgewater disclosed 585 positions worth $24.8 billion in public equities, up from $21.6 billion in the first quarter.
Read Next:
Photo via Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
