Onshore China fund managers poised for international stage

Tue Jun 22, 2010

Read more:



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 home.

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 and a...

ISSN: 2151-1845 / CDC10004H

TAKE A FREE TRIAL

The full contents of this article are available to active AsiaHedge subscribers and trialists only.

To continue reading please,
take a free trial or subscribe to AsiaHedge.

Subscribe

Subscribers have unlimited access to all current content, including hedge fund performance Live League Tables. Start your subscription today - click on the button below.

Subscribe now