Bridgewater expanding bets on China

Hedge fund to set up investment management unit in Shanghai

Bridgewater Associates, the world's largest hedge fund with around $150 billion in assets under management, has set up an investment management unit in Shanghai, according to a Chinese government website filing, signalling that the firm is looking to expand its bets on China.

The move comes as some hedge fund managers around the world including Jim Chanos and Kyle Bass have piled into short trades against Chinese assets, amid fears the country's overleveraged economy and ballooning bad loans are set to derail the world's second-largest economy.