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



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

Register

By registering you will receive

  • A monthly newsletter on your specified areas of interest
  • A fortnightly update on the sector

Free Trial

Take a trial today and access

  • Performance news, fund launches, regulation changes and people moves
  • Profiles of fund managers, investors and distributors
  • Live league tables
  • Investor mandates


Popular Searches on HFI