Diversification and deepening of China stocks fuels investor interest
Mon Jun 20, 2011
The go-go days may be gone now but China is still a frontier market for investors, and there is an ever broader range of strategies, such as sector rotation, coming into play
Although China is still clearly a frontier market for
investors, it is a frontier that is rapidly becoming more and
more sophisticated, complex and diverse. The renminbi may not
yet be completely freely convertible, and shorting single
stocks is still impossible, but the range of stocks listed
onshore and offshore gets deeper and wider by the year,
exchange-traded funds abound, and there are government
initiatives under way in RMB exchange, futures trading, margin
trading, stock lending and credit, all of which hold promise of
a fully diversified hedge fund investment environment in the
At the same time, China hedge fund managers, scorched by the
impact of the global financial crisis, either fell by the
wayside or adapted to survive. China may be a frontier market,
but the go-go days are gone, and the China hedge fund universe
is increasingly populated with managers working with a
The full contents of this article are available to active AsiaHedge subscribers and trialists only.
TAKE A FREE TRIAL
To continue reading please, take a free trial or subscribe to AsiaHedge.
Subscribers have unlimited access to all current content, including hedge fund performance Live League Tables. Start your subscription today - click on the button below.