Bridgewater Associates chalked up further losses on its bets on Chinese stocks in the third quarter of the year as Beijing’s continuing zero-Covid policy and monetary tightening policy in developed markets prompted the biggest sell-off since 2015, according to a report by The South China Morning Post.

Bridgewater Associates chalked up further losses on its bets on Chinese stocks in the third quarter of the year as Beijing’s continuing zero-Covid policy and monetary tightening policy in developed markets prompted the biggest sell-off since 2015, according to a report by The South China Morning Post.

The report cites Bridgwater's latest 13F regulatory filing as revealing that the world’s biggest hedge fund recorded an 11 per cent decline to $1.21 billion in the value of its equity stakes in 44 US-listed Chinese companies for the September quarter on Thursday. Its portfolio suffered a 37 per cent drop in value in the preceding three months.

The fund though, founded by longtime China bull Ray Dalio, added new positions in fast-food chain operator Yum China and brokerage Futu Holdings during the quarter with a combined outlay of $81.9 million.

The MSCI China Index of 715 stocks traded at home and abroad lost 23 per cent in the three months ended 30 September, while the Nasdaq Golden Dragon China Index, which tracks 65 Chinese companies, fell 22 per cent, with the declines wiping out $1 trillion and US$237 billion of market value, respectively.