Bridgewater Associates reiterated its bullish stance on Chinese stocks after its onshore hedge fund logged a 45% gain in 2025, delivering the strongest return in at least five years. The surge follows a broader rally in mainland equities that has drawn renewed foreign interest and prompted several asset managers to reconsider allocation targets.

Investors attribute the rally to Beijing’s post‑pandemic stimulus, including lower borrowing costs and relaxed property‑sector curbs. Currency stability and improved corporate earnings have also narrowed the discount between A‑shares and offshore listings, making onshore exposure more attractive to global funds seeking diversification away from U.S. volatility and to capture growth in sectors such as technology and consumer services.

Looking ahead, Bridgewater may increase its China allocation if policy support persists, but regulators’ tightening of data security rules could curb sentiment. Market watchers will monitor quarterly earnings and any shifts in capital controls, as those factors will determine whether the fund can sustain its outsized performance through 2026.