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Today, Ray Dalio, the founder of Bridgewater, the world's largest hedge fund, talked about his views on investing in China in an interview with Bloomberg TV. It is worth everyone's serious attention! Summary of GPT4, the key points are as follows👇: 1. Residents' wealth shrinks. Over the past four years, China's real estate and stock markets have experienced declines, leading to the evaporation of the majority of residents' wealth, especially the middle class. Residents are beginning to turn to holding cash, and in the background of Deflation, cash is a relatively safe asset. 2. Land finance. The downturn in the real estate market has increased the debt pressure on the Chinese government. It has become increasingly difficult to sustain through traditional land finance methods. Local governments face funding shortages and it is difficult to escape the debt quagmire without structural reforms. 3. Property Ownership. Personal property ownership is sacred and inviolable, but it has been questioned in China. This relates to investor confidence and the ability to effectively protect personal private property in the long term, which is an important challenge in economic structural adjustment. This is more common in the cases we have recently seen, such as cross-regional law enforcement and a significant increase in non-tax revenue. 4. Getting rich is glorious. During the era of Deng Xiaoping, 'It doesn't matter if a cat is black or white, as long as it catches RATS it is a good cat.' 'Let some people get rich first.' Such thoughts are disappearing, and everyone's concerns about the deteriorating entrepreneurial environment and policy uncertainties have become stumbling blocks for entrepreneurship. Is the concept of 'getting rich is glorious' still applicable? 5. Technological innovation is guided by the government. In the video, Dalio affirmed China's advantage in technological innovation, but it is not open, and most of it is guided by the government. Under this circumstance, the sustainability of the soil for enterprise innovation and vitality is questioned. 6. Whether to continue investing in China. Dalio believes that any economy has its cycles, with highs and lows. He will continue to invest in China, but is reducing the proportion of investment, and it is not advisable for China to become a dominant part of the investment portfolio. He believes that China is currently facing more serious economic challenges than Japan in the 1990s, and hopes that China can emerge from the structural economic reform.
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