Hedge Fund Titan Warns China of Economic Risks

Hedge fund titan Ray Dalio recently cautioned China to address its debt and monetary policy to avoid a potential 'lost decade.' Growing China-US tensions are prompting foreign investors to diversify or exit the country, impacting China's ability to attract investment. Dalio's warning also highlighted the possibility of heightened economic and cultural clashes leading to a potential armed conflict within the next 10 years. The prolonged property downturn in China is further straining the balance sheets of its major state banks, with rising bad loans due to the economic challenges. These issues are pressuring banks to support the domestic economy and assist debt-ridden property developers and local governments, resulting in increased bad loan ratios across several major banks.