Onshore China fund managers poised for international stage
Sat Jun 26, 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
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...
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