Players in the Hong Kong hedge fund industry have
undergone a degree of soul-searching over the years as they
evaluate their role in the broader regional
With regard to the perceived competition, Australia has
never been considered as a competitor to Hong Kong, despite its
larger size in terms of assets under management.
Australias hedge fund industry is essentially far more
domestically oriented and self-sufficient. The countrys
ban on shorting in 2008, and the possibility this will be
retained in future, has probably stymied the further growth of
the local hedge fund industry there.
Similarly, even though Japan has constituted a much larger
market in the past, it has tended to complement Hong Kong,
rather than compete with it over the years. This is partly due
to the fact that Japan long/short equity investment has always
tended to eclipse other investment strategies among Japan-based