With local-level debt still posing risks in China, while US borrowing accelerates, Beijing turns to the Wall Street veteran for guidance while navigating precarious financial waters
As China works to defuse its debt risks, and with unchained US borrowing rocketing skyward, Ray Dalio finds himself at the centre of an important conversation in Beijing – advising top officials as they face a delicate path ahead.
Chinese officials rolled out the red carpet this week for the billionaire investor and founder of Bridgewater Associates – one of the world’s largest hedge funds – as his words of caution on the risks facing major global economies appear to be increasingly resonating in China.
People’s Bank of China Governor Pan Gongsheng met with Dalio on Tuesday to “exchange views on the international economic situation and financial market dynamics”, according to an online statement by the central bank.
Dalio also gave a lecture to officials from the PBOC and foreign exchange regulator, discussing topics such as the debt cycle, the statement added, without elaborating.
