China will emerge as a rival to New York and London as the world’s financial centre, according to Bridgewater founder Ray Dalio, who is betting heavily on what would be an epochal shift in the global economy.
2020 was a “defining year” for Chinese financial markets, the co-chief investment officer of the world’s biggest hedge fund told the Financial Times last month, with the coronavirus crisis starkly highlighting the country’s economic outperformance — and spurring Rmb1tn of investment inflows.
Although China’s financial system remains less developed than its western peers, it will be only a matter of time before it is a contender for Wall Street and the City of London’s supremacy, Mr Dalio said.
“China already has the world’s second largest capital markets, and I think they will eventually vie for having the world’s financial centre,” Mr Dalio said. “Throughout history, the largest trading countries evolved into having the global…