Onshore China fund managers poised for international stage
Tue Jun 22, 2010
China's onshore private funds industry is growing explosively, and in the backdrop of ongoing regulatory reforms is ripe for a transformation into an international-style hedge fund industry
In many countries, moving out of a big fund
house to set up a hedge fund is now a normal career path for a
successful mutual fund manager. But in China, the path to such
entrepreneurial opportunities is not quite so obvious.
Similarly, Chinese mainlanders who were educated and cut their
hedge fund management teeth in the world's major financial
centres don't find it quite so easy to set up a hedge fund back
Under regulation by the China Securities Regulatory
Commission (CSRC), mutual funds must maintain a high investment
level in equities, which limits ability to go to cash;
short-selling is forbidden and derivatives are in their infancy
in mainland China. However markets, like nature, abhor a
vacuum. And despite the obstacles to setting up hedge funds,
the demand for alternative investment has been met with a
proliferation of private funds with an absolute return mandate
ISSN: 2151-1845 / CDC10004H
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