Macro Economy: China Is Undergoing Heart Pplantation

The pains of China's economic pformation have attracted widespread attention, and Dario, founder of the world's largest hedge fund bridge (Bridgewater), is no exception. (Bridgewater)

In the latest statement, he said China is undergoing "heart pplant surgery", which will cause a great blow, but in the long run it will only become healthier.

Dario said in a Bloomberg TV interview yesterday:

Undergoing heart pplantation, there may be no problem in the long run, but it will really make you weak, and the operation will be carried out smoothly.

You will survive and you will be healthier than before.

I think this is the current situation.

He also said that China needs a "new economy" to reduce its dependence on manufacturing and other old industries. The Chinese government can also handle the debt restructuring problem well, "their leaders have capable people".

He said:

China's economy is changing from investment driven to consumption driven in the past, and the debt accumulated rapidly in the stage of economic dependence on investment drive has also become a problem that has to be faced.

In the middle of last month, S & P pointed out that China faced with low interest rates and debt raising caused by corporate borrowing.

The rating is under pressure.

Dario said that the current situation in China is very similar to that experienced by the United States and other countries and faces high debt problems.

He believes that China's "copying the template of other countries" is OK, but it can not make debt growth faster than revenue growth in the long run.

There are good ways and bad ways to deal with these things.

Very important.

Referring to China's capital outflow, he said that this is indeed a problem, but the Chinese government has control over it because many of these funds come from state-owned enterprises.

And with the further opening of China's bond market, "despite the challenges of balance of payments, China's tools and capabilities are the world's leading players."