(Yicai Global) Nov. 14 -- Bridgewater Associates significantly cut its holdings of emerging market exchange-traded funds in the third quarter and purchased more of those targeting China and the US, China Securities Journal reported.

The world's largest hedge fund bought 20 percent more of iShares MSCI China ETF and iShares MSCI China LG-Cap ETF after it getting into the two funds last quarter, the report said, citing Bridgewater's stock position filing with the US Securities and Exchange Commission yesterday. But the two funds still don't make up much of Bridgewater's total portfolio.

The two funds are the largest and most liquid Chinese ETFs listed in the US. The iShares MSCI China ETF can fully capture incremental funds brought by MSCI's inclusion of Chinese mainland shares.

Bridgewater scaled back its holdings in ETFs that target emerging markets. It sold 21 percent of its holding in Vanguard FTSE Emerging Market ETF, 25 percent of iShares Core MSCI Emerging Market ETF and just over half of iShares MSCI Emerging Market ETF.

Managing assets for 350 institutional investors including sovereign funds, pension funds and charitable foundations, Bridgewater has USD160 billion under supervision.