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From Precy Dumlao, Opalesque Asia:

The hedge fund industry in mainland China has come a long way and is discarding its image as a grey market. But while regulatory conditions have somewhat improved to allow foreign and new players to come in, the communist regime’s “ambition to control development” will mean a slower evolution.

This was the collective assessment reached by participants in the recent Opalesque Hong Kong Roundtable.

Vincent Duhamel, CEO of Sail Advisors, an alternative investment management and research firm with offices in Hong Kong and New York and $2bn in AuM, said that China’s hedge fund industry has been growing for quite some time and is now slowly coming to light.

Duhamel said the hedge fund industry in mainland China differs from Hong Kong’s as fund managers on the mainland do not use the same tools or all of the tools that the typical hedge fund would be allowed to use. Other than that, there are some similarities, including the two and twenty fees.

“We still have the problem with onshore and offshore structures - what will be allowed for foreigners and what will be allowed for mainland Chinese - but it is just a question of time before this restriction also disappears. The offshore market in Hong Kong has been much more efficient. A number of talented managers on China have done very we......................

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